A new soybean crushing plant that will be built in Buena Vista County near Alta, Iowa, pending state and local approvals, will propel value-added agriculture forward in Iowa.
Development partners Mike Kinley and Nick Bowdish have joined forces to develop Platinum Crush, LLC, the second, modern soybean processing facility in the state. Kinley is also leading the development of Shell Rock Soy Processing (SRSP), which is under construction in Butler County in northeast Iowa.
“Platinum Crush is positioned to extract all the value possible from locally-grown soybeans,” said Kinley, the managing member of Ag Development Group LLC, which develops value-added projects for the ag sector. “This plant can supply both food and fuel needs. It will also bring Buena Vista County and the surrounding area into the center of the global food and fuel economy.”
Platinum Crush will own the new facility, which will cost approximately $350 million to build. Groundbreaking is slated for late 2021. When the plant becomes operational around March 2024, it will crush 38.5 million bushels of soybeans annually, or 110,000 bushels daily. It will also create 50 to 60 high-quality jobs.
“Not only will Platinum Crush create many high-quality jobs, but it allows northwest Iowa to build on its strong agricultural heritage,” said Bowdish, a leader in the development and management of Midwest ethanol plants, including Elite Octane in Atlantic, Iowa, and Siouxland Ethanol in Jackson, Nebraska. “This plant will expand farm income and help diversify the economy, which can benefit everyone in the region. The benefits stem from many different people all doing their part.”
Platinum Crush will be built adjacent to the CN Railway, which will service the facility.
“CN is pleased to see the next world-class soybean crush plant select our network to move value-added agricultural products to consumers all around the globe,” said James Cairns, senior vice president, rail centric supply chain, for CN Railway. ”We are excited about the opportunity to make this facility a reality in northwest Iowa.”
Platinum Crush, by the Numbers
Platinum Crush will produce 847,000 tons of soybean meal per year (2,420 tons per day) for livestock feed markets, 450 million pounds of crude soybean oil per year (1.28 million pounds per day), and 77,000 tons of pelleted soybean hulls per year (220 tons per day). The soymeal and soy hulls (which contain highly digestible fiber) will be used in livestock feed rations.
Soybean oil from Platinum Crush can be used for a variety of applications, including the human food industry and the rapidly expanding, renewable diesel bioenergy segment.
“Platinum Crush will add tremendous value to soybeans in northwest Iowa,” said Kinley, who noted that Ag Development Group and N Bowdish Company will own a portion of Platinum Crush. “By streamlining the supply chain, this plant will also save local soybean growers time and money, plus it will open up a more direct relationship with the processor.”
Platinum Crush will be able to unload trucks quickly, saving farmers and truckers a great deal of time when they deliver soybeans to the plant.
“This soybean crush plant is a farmer’s dream,” said David Mentzer, who farms in the Alta area. “Our closest plant is more than an hour away, and it’s notorious for having 3- to 4-hour waits. Platinum Crush will increase demand for soybeans in our area. More profit potential means farmers will likely add more soybeans to their crop rotation.”
The economic impact of Platinum Crush can’t be overstated, noted the Iowa Lakes Corridor Development Corporation (ILCDC).
“This is an exciting project for Buena Vista County, the Iowa Lakes Corridor region and the state of Iowa,” said Shannon Landauer, president and CEO of the ILCDC, which provides economic development services to northwest Iowa counties in the region to prepare for projects like this. “Bringing quality jobs to the area, while expanding market opportunities for local producers, is a perfect example of an economic development project in Iowa that has global reach. We’re excited to see this project become a reality.”