After American Crystal made the decision to close the Sidney Sugars beet processing plant last spring, multiple companies reached out with ideas to revive the industry. But according to Jeff Bieber, one company really stood out from the rest and is now actively exploring a renewable energy plant near Fairview that would create biofuel from sugar beets.
Greenwood Renewable Ventures (GRV), a Colorado company, was formed in September 2022 as a wholly-owned subsidiary of Pulse Energy Partners, which had been formed to invest in strategic energy development projects. GRV's mission is to advance energy transition in biofuels. With several years of experience in renewable natural gas, and contacts made with existing plants to purchase their beet pulp, the company started looking at building their own biofuel plant. Co-founder and CEO Jason Gaines was raised in Dillon, married a Sidney native, and has multiple ties to the area. When the Sidney Sugars plant closed, he understood the devastating impact that would have on the community. Since American Crystal took the sugar allotment but not the beet acres, he and his partner, president and COO Casey Korejwo immediately began looking into the feasibility of turning sugar beets into biofuel, creating an avenue for local growers to succeed, as well as providing an environmentally friendly fuel alternative.
Turning sugar beets into biofuel is not new. Although there are currently no plants in the U.S., beet ethanol has long been a fixture of Europe's bio-energy mix. The process is relatively simple, requiring less purification to get to the finished product. Beets are sliced, then run through a diffuser. The sugar water is fermented into alcohol, which is distilled into full ethanol. The pulp undergoes an anaerobic digestion process, which produces a renewable natural gas comprised of methane and carbon dioxide. Finally, the remaining compost goes back on the growers' fields to help with the next crop, replacing traditional chemical fertilizers.
GRV was persistent enough that Bieber and his son, Justin, agreed to take their proposal to the MonDak Beet Growers Association board. After hearing the proposal, the board gave the idea the green light and a meeting was set up between GRV and growers, bankers, fertilizer and seed companies, county commissioners, and other interested parties. The MonDak board then re-met and determined there was enough interest and excitement to move forward. Volunteers were then requested to form a new board and a new association.
Two Rivers Energy Growers Association was created with the name representing all the growers in the area. The board consists of president Bieber; Brandon Hoffman, vice president; Adam Cayko, secretary-treasurer; and members Phillip Hurley, Ryan Bell, and Allen Ollerman. Bieber explained that it took a while to come up with the new name. They wanted something catchy but not MonDak. Two Rivers was chosen to represent everyone on both the Yellowstone and Missouri rivers. Two Rivers is a completely new organization with no funding from the MonDak Beet Growers Assn. They have worked with Daniel Stenberg and the McKenzie County Job Development Authority in Watford City to get a grant to get the new board up and running and have connected with Yellowstone Township as well.
"GRV is incredibly excited to be working with the leadership of the new association to advance this strategic partnership. We are committed to a long term and mutually beneficial relationship that will provide certainty and value to the community. We view this as a wonderful solution to the difficult situation of the Sidney Sugars closure," Gaines stated.
Negotiations with GRV began, with a term sheet executed on June 2, 2023 for the long-term purchase of sugar beets. "We are thrilled to have taken this significant step with the association, deepening the partnership. We look forward to working with the growers on the SBPAs and moving this project forward. This is a critical step in bringing this project to market," Korejwo said.
Bieber said they were the most refreshing negotiations he had ever been a part of. "It was a breath of fresh air," he said. After negotiating with American Crystal for the past 20 years as a board member and president where it was always a fight to get a fair contract for growers, and a particularly ugly fight a year ago, he and the rest of the board were delighted to be working with a company that was open to suggestions, and looking to negotiate a fair contract on both sides. Bieber explained that the side benefit of all those American Crystal negotiations was that they knew what the growers wanted, particularly eliminating the risk with storage issues. "GRV wants the beets to deteriorate so there's no storage issues," he explained. "It's much more relaxed."
"GRV is changing the way we will deliver beets at harvest, traditional slow beet pilers will not be used," Bieber said. "They won't be dictating every action in the field. The farmer farms and they process the beets." Additionally, the growers will not be asked to be financially responsible for any processing issues. They will be asked to raise the crop with contracts secured by proof of funds before the crop is planted. Korejwo explained that their interest is in buying beets with high weights and sugar content, not dictating what can be grown or how. There may also be a need for additional crops. The plant will need at least some wheat stalks and there may be an opportunity to turn crop residue or waste into value at the facility. GRV will be working closely with the growers to identify these potential crop additions.
GRV has an agreement in place for 120 acres just north of Fairview as a plant location. They don't want growers to have to haul more than 20 miles so they will also have dump sites where needed. They plan to sell the biofuel to the west coast market where various states have incentives and pay premium prices for biofuel. They have partnered with Mast Capital Advisors (MCA), looking for private investors at this time, as well as possible state and federal incentives. Korejwo said they are pushing to have the plant completed for the 2025 growing season but realistically looking at 2026. "Hopefully, it will all go quickly," he said. The plant is expected to cost between $225 and $240 million. In addition to the value to the growers, the new facility will create 75 new fulltime jobs plus an additional 200 seasonal jobs.
GRV is also in active talks with Prewitt Land & Livestock to use manure from their feedlot to help power the plant.
Over 9,000 acres have been committed so far with 10,000 being the goal as the board continues to visit with potential growers. Peak acres in the past were 47,500 so there are still lots of potential growth with traditional beet ground. Term sheets and purchase agreements will need to be signed with growers committing to a number of acres for a number of years, determined by them. "For example, growers can agree to 100 acres for five years, or 500 acres for 10 years, whatever they feel comfortable with," Bieber stated. "The board tried to put the farmers in the best possible place, not just for income but option wise for the length of the term, plus safety outs with the option to get out of the contract."
The board also negotiated pricing. Bieber said that the 2022 crop would have received 4-8 dollars more per ton under GRV than what American Crystal paid. Price stability was also negotiated, taking the huge swings out of the price scale and making it as even as they could. They developed a floor price that will never go down, but can go up each year based on inflationary costs.
Former beet growers are trying other crops right now, some more profitable than others "I encourage growers who are looking for crop diversity to contact us. It's one more tool for their farms," Bieber said. Two Rivers Energy wants to reach all interested growers and board members are playing a huge role in trying to contact everyone interested in this new opportunity. Please contact GRV, Bieber or any board member if you are interested. "We would love to have a conversation with any grower," Korejwo said. "We're excited and thrilled to be moving forward on the ground."
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