Investors sought for Montana ethanol operation

The Rocky Boy tribal council will be looking for $87 million in startup capital for an ethanol plant, council members said Thursday.

A plant at Rocky Boy would bring in a healthy profit with little negative impact on the area, according to a feasibility study conducted from February to April.

"Our tribe doesn’t have to write a check for this amount, which is a misconception," said Neal Rosette, chief operating officer for the firm spearheading the project for the tribe, the National Tribal Development Association.

With the study in hand, NTDA is preparing to formulate a business plan that Rosette said he hopes will bring in investors. NTDA will partner with industry members to come up with the plan, he said. The ethanol company would be run separately from the tribe.

The study predicted a 43 percent annual average return on investment over 11 years. Rosette said investors consider an ethanol project when they see a projected return rate of at least 25 percent.

Ellen Thompson
Havre Daily News

[email protected]

Full Story: http://www.havredailynews.com/articles/2005/06/10/local_headlines/ethanol.txt