Ring-Neck Energy Launches Road Show for S.D. Ethanol Plant
Ring-Neck Energy LLC, which is behind a planned $140 million ethanol facility in Onida, S.D., is set to kick off a road show to raise capital for its planned ethanol plant, according to Capital Journal. The company’s maiden event will occur on Wednesday, July 29, in Onida, S.D., which is where the company wants to develop its ethanol facility.
The project is expected to produce 70 million gallons of biofuel ethanol per year for the local, regional and national markets by the fall of 2016 and will “meet the standard 20% reduction in greenhouse gas emissions,” according to the company’s marketing materials.
The Ring-Neck Energy management team plans to hold dozens of investment meetings in South Dakota alone and will also visit Iowa, North Dakota and Minnesota collecting commitments of at least $50,000 per investor.
“We’re committed to the project. We’re going to hold meetings until we have enough to build the plant,” said developer Walt Wendland.
For the biofuel ethanol project to operate at the 70 million gallon capacity, Ring-Neck Energy must raise $74.5 million in equity. Ultimately management hopes to produce 100 million gallons of biofuel ethanol per year. To do this, the company’s management team has partnered with local company Bioenergy Capital Consultants, an experienced team whose capital raising efforts have led to production at almost two dozen ethanol plants, according to Capital Journal.
Wendland is no stranger to raising capital either, evidenced by his stint as chief executive at Golden Grain Energy, a clean burning ethanol plant in Mason City, Iowa. That project required almost 70 meetings before the capital threshold was met. Now Wendland is committed to South Dakota.
“I’ve lived it and I’ve seen what it’s done for agriculture. That’s where my heart is in this thing. I think I’m officially a South Dakotan now. I’m here all the time. And after we put on 50 meetings, I’ll know the state extremely well,” said Wendland cited in Capital Journal.