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The Associated Press reported a $2.5 million grant from the Iowa Economic Development Authority (IEDA) to SynGest, Inc., San Franciso, CA has been canceled.
SynGest announced plans nearly three years ago of its intent to construct a 50,000 ton anhydrous fertilizer plant near Menlo, on ground just east of the ethanol plant along White Pole Road. Fuel source for the bio-ammonia plant was to be 150,000 tons of corn cobs annually.
Reason for the cancellation, according to IEDA, was SynGest Inc. chairman Serge Randhava was accused of racketeering and fraud in a federal lawsuit filed in Illinois. The charges stemmed from a research project involving fertilizer. This was not disclosed on the state grant application. As a result, SynGest was informed its Iowa Power Fund grant was being terminated "due to the nature of this default and the impossibility of cure."
According to AP, SynGest CEO Jack Oswald maintains the project holds great promise for Iowa's economy and that the company will work with state officials to reinstate the grant which was awarded in July 2010 contingent upon $3.5 million in matching funds. SynGest had hoped the bio-ammonia plant would be operational in early 2013.
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©Guthrie Center Times 2013
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