Co-ops to build propane terminal in Wisconsin

Co-ops to build propane terminal in Wisconsin

CHS recently signed a long-term agreement with Federation Cooperative in Black River Falls, Wis., to build a propane terminal at Hixton, Wis., that will be managed and operated by Federation Cooperative.

The agreement is part of an estimated $24 million investment previously announced by CHS to expand propane service in the region affected by the Cochin reversal project.

"Given the severe winter that we experienced, this new CHS propane terminal is a great and welcomed addition to Wisconsin's propane infrastructure," Wisconsin Gov. Scott Walker said.

The new terminal is expected to be completed by fall and will have 360,000 gal. of storage tanks. Served by the Canadian National Railway, it will be able to offload six railcars every 4.5 hours, with two truck loading bays capable of loading six trucks per hour.

"With the reversal of the Cochin pipeline, our propane supply will be compromised. We are excited to work with CHS on this venture to ensure a steady propane supply for our customers," said Jeff Polivka, general manager and chief executive officer of Federation Cooperative.

CHS will access and distribute propane through the new terminal to customers in Wisconsin, Minnesota and Iowa.

In other company news, CHS announced that it has acquired Illinois River Energy LLC from Sinav Ltd. Terms were not disclosed.

The 133 million gal.-per-year ethanol plant will be rebranded as CHS, and 60 people will become CHS employees.

Volume:86 Issue:23

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