For Immediate Release
November 14, 2007

KDHE Office of Communications, 785-296-0461

KDHE Approves Air Quality Construction Permit for Dodge City Ethanol Production Facility

The Kansas Department of Health and Environment (KDHE) has approved the air quality construction permit for the proposed Dial Energy ethanol production facility in Dodge City.

The permit approval comes less than one month after KDHE Secretary Roderick L. Bremby denied Sunflower Electric Power Corporation’s air quality construction permit for two 700-megawatt, coal-fired generators.

“There has been speculation that last month’s Sunflower decision would in some way threaten the ethanol and biodiesel industry in Kansas,” said Bremby. “That is simply not the case. Kansas is still open for business. None of the air quality construction permits currently being reviewed by KDHE begin to approach the magnitude of the CO2 emissions from the proposed Sunflower facility and should not experience any delays in issuance.”

KDHE received Dial Energy’s completed air quality permit application on August 1, 2007. The draft permit was placed on public notice from September 20 to October 22, 2007. There are currently four other ethanol and one biodiesel air quality construction permits under review by KDHE.

The facility, with an estimated $150 million construction cost, will have a capacity to produce 124 million gallons of ethanol a year. KDHE has permitted 23 ethanol and biodiesel projects representing approximately $2.5 billion in construction costs.

“The Dial Energy ethanol facility adds to the portfolio of energy producers permitted by KDHE located in western Kansas,” said Bremby. Fifteen (15) of 18 ethanol and biodiesel facilities either constructed or under construction are located west of US-81.

At maximum capacity, the facility has the potential to emit an estimated 600,000 tons of carbon dioxide per year. By comparison, the Sunflower expansion would have released an estimated 11 million tons of CO2.

“The ethanol and biodiesel industries play an important role in Kansas’ renewable energy future,” said Bremby. “It is important that we take the next step together and engage these and other industries to establish goals for reducing carbon dioxide emissions. These goals will serve as the foundation for a Kansas climate action plan.” No fewer than 35 other states have created, or are in the process of creating, climate action plans.

Note to editors and reporters: Attached is a map detailing the ethanol and biodiesel plant activities in Kansas. KDHE grants permission to reproduce and/or publish the map.