The city of Sioux Center is working on providing Siouxland Energy Cooperative with a gas pipeline that will extend 5 miles. Sioux Center City Council approved in a February meeting to issue taxable gas revenue loan notes for the project. The notes cannot exceed $5 million.
However, the pipeline project will have to rely on the ethanol plant’s plans to move ahead since they are the center's biggest customers.
Murray Hulstein, the Sioux Center utilities manager, says the ethanol plant is the Sioux Center's largest customer. He also says the more natural gas it sells, the more it benefits all Sioux Center customers.
“The ethanol plant is the city of Sioux Center’s largest customer by far, so we would do this to continue to sell natural gas to them,” he told Sioux Center News. “The more natural gas we sell, you have the economies of scale that benefit all of our customers.”
Siouxland Energy’s Director of Operations Jeff Altena says there are some competitive advantages that the energy industry would have.
“There are some competitive advantages that we would have, and those would be things we want to keep confidential at this point,” he told Sioux Center News.
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