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HULL, Iowa -- A biofuels manufacturer is seeking $2.8 million in state incentives to build a $58.7 million plant near Hull.

The proposed ReadiFuels-Iowa plant would produce about 34 million gallons of diesel fuel from distillers corn oil, grease, tallow and other non-edible feedstocks, according to documents filed with the state.

A newly created entity formed by Applied Research Associates and C&N Biofuels, ReadiDiesels-Iowa would be the nation's first commercial facility to use a biofuels process developed by ARA and Chevron Lummus Global. 

The plant would be built on a 77-acre site in rural Sioux County that was partially developed for Bison Renewable Energy beginning in 2006. The Bison project was never completed and the property was sold as part of a Chapter 7 bankruptcy proceeding in 2012.

Construction is expected to begin in the fourth quarter on the ReadiFuels-Iowa plant. When finished in November 2020, it would employ 31 people, at an average wage of $20.47 per hour.

The Iowa Economic Development Authority Board on Friday is scheduled to consider the company's request for $2.8 million of assistance from the state's High Quality Jobs Program. The incentives would include $2.38 million in investment tax credits and the refund of $429,000 in sales taxes for services and materials for the construction. 

Sioux County Board of Supervisors also would contribute $750,000 of incentives, which would include a rebate of $270,000 property taxes over five years, according to state documents. The county also would pay to pave a road leading to the property and install turning lanes at its intersection with Highway 75. 

The project's funding sources also include a $45.13 million guaranteed loan from the U.S. Department of Agriculture, according to the state documents.

The plant would initially use distillers corn oil, a byproduct of corn-based ethanol. Northwest Iowa has one of the state's largest concentrations of ethanol plants.

The ReadiFuels-Iowa plant eventually would add other feedstocks not typically used to produce food or feed. The flexibility is derived from the proprietary biodiesel process' ability to use "high free fatty acid content," according to the state documents.

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