By TIM ALEXANDER Illinois Correspondent
PEKIN, Ill. – Through decades of uncertain financial times, changes in ownership and shifting consumer demands, the grain alcohol plant on the banks of the Illinois River at Pekin in Tazewell County has maintained and, at times, flourished. Now known as Alto Ingredients, LLC, (formerly Pacific Ethanol of Sacramento, Calif.) the plant at 1300 S. 2nd Street in Pekin is currently awaiting permanent approval of year-round E15 ethanol to expand production. Founded as a corn liquor distillery during the 1860s, the plant is adding value to its dry and wet mill ethanol production through diversification into Co2 products, sustainably produced specialty yeasts and alcohols, distilled and powdered vinegar, flavor extracts, and ethyl alcohol, among other mill co-products of biofuels production. “Alto Ingredients is one of the leading technology development groups in the nation around fermentation and opportunities for profit enhancement through new product development, using corn and soybeans along with other types of biologicals in food production,” said Kathie Brown, director of rural outreach and development for the Greater Peoria Economic Development Group, which sponsors the central Illinois-based Ag Tech Connect initiative. Recently, Alto Ingredients hosted over three dozen Ag Tech Connect members, along with state ag commodity association leaders, educators and local lawmakers for a rare open house and tour of the sprawling, 145-acre complex, which includes two dry mill distilleries, a wet mill distillery and specialized yeast production facility. As an integral part of its operations, the company’s Alto ICP (formerly Illinois Corn Products) dry mill and distillery manufactures alcohol for food, beverage, disinfectants, and industrial markets, along with protein products for feed and food, CO2 for beverage and industrial processing, pharmaceutical-grade alcohol and low carbon renewable fuel for transportation. ICP’s footprint at the 2nd Street location can be traced back more than 150 years, with the company purchased by Alto Ingredients in July 2017. “These two companies operated across from each other with the owners knowing each other for well over a century” before the buyout of ICP by Alto, according to Todd Benton, COOr, who led off the Ag Tech Connect tour with a presentation on the history and current operations of the plant. “Its history goes back to the Civil War, essentially, as an agri-distillery. It’s been making alcohol ever since. What we do is probably the oldest technology.” In all, Alto operates three distilleries and a specialty yeast production facility at its Pekin campus, distilleries in both Idaho and Oregon, and a specialty alcohol and packaging warehouse in St. Louis. “The heart of the operation is here at the Pekin campus,” said Benton, adding that around 20 total products are manufactured at Alto, including cleaning solutions and pharmaceuticals. While many of their products are sold in both domestic and international markets, branded products including their trademarked Alto Yeast are produced, marketed and distributed from the Pekin campus, he said. Benton noted that the company would welcome a boost in corn volume and overall revenue if permanent approval by Congress for year-round E15 were granted. Local farmers “drop off a lot of grain” at Alto Ingredients and would financially benefit from year-round E15, according to Brad Stotler, ICGA director of public policy, who attended the Alto Ingredients open house and tour. “Alto is a prominent member of our Illinois Renewable Fuels Association, and supportive of our ethanol industry here in the state,” Stotler said. “E15 will be an important driver to the domestic fuel industry depending on how quickly the buildout can happen. If E10 fuel were to become E15 where all gallons have E15 in it, we are talking about a two-billion-bushel corn demand increase. That’s not going to happen tomorrow because a lot of infrastructure needs have to be met along with other issues that have to be resolved.” A 2025 projection by Illinois Corn estimated that with the installation of E15 pumps at U.S. fuel stations, Illinois farmers could see an increase of 133 million bushels of corn demand per year. If Congress were to authorize a 5 percent increase in the national fuel blend rate (to 15 percent ethanol from 10) it would equate to 6.81 billion gallons of additional ethanol used domestically, or 2.43 billion bushels more corn used in ethanol, according to projections issued by the National Corn Growers Association. Alto Ingredients currently processes around 80 million bushels of corn per year, according to Benton. He said that year-round E15 would “very much be a catalyst for growth for our industry and the future of Alto Ingredients.” |