Construction

Fagen Inc. has entered into a contract with Illinois River Energy, LLC to expand the ethanol production capacity of the facility from 50 million gallons per year to 100 million gallons of fuel grade ethanol annually.

The expansion will incorporate ICM process engineering and technology as did the initial facility. ICM Inc. is an industry innovator who transforms new technology into practical solutions. The ICM/Phoenix Bio-Methanator waste treatment process cleans and reuses the plant's process water providing for zero wastewater effluent. ICM technology allows Fagen Inc to provide the performance guarantees listed below:

• Guaranteed fixed price for plant construction.
• Minimum ethanol yield of 2.80 denatured gallons per bushel of corn
• Maximum natural gas usage of 34,000 btu per denatured gallon on ethanol produced
• Maximum electricity usage of .75 kwh per denatured gallon of ethanol

Fagen Inc. was issued the Notice to Proceed with construction on July 31, 2007. Construction began in August 2007. The EPC construction contract calls for the plant expansion to be completed in April 2009. The project is on time and on budget.