A Denmark company that manufactures enzymes used in making ethanol fuel and at one point in its search for a North American plant showed interest in Albert Lea has picked Blair, Neb.

The other three finalists in Novozymes’ search were Eddyville and Farley in Iowa and Watertown in South Dakota.

Dan Dorman, executive director of the Albert Lea Economic Development Agency, said ALEDA first made contact with the company through the Minnesota Department of Employment and Economic Development last July. Albert Lea was the only city in Minnesota to survive the first round of cuts.

Novozymes officials made the announcement Monday and told the Nebraska press it wanted the plant in the Midwest, rather than China, Latin America or other parts of the United States, so it could be closer to the ethanol-producing customers in the Corn Belt. It said the Midwest also offers competitive wages and a productive workforce.

Dorman said though many places offered tax incentives, Blair had a big advantage if the company’s decision came down to electrical rates. The Omaha World-Herald reported: “Roger Christianson, the Omaha Public Power District’s economic development manager, said electricity rates at the Blair site will be between 30 and 40 percent lower than rates offered in some other locations.”

Novozymes intends to construct a $100 million plant south of Blair and hire about 100 people to work there. It is slated to be at full capacity in 2010. Blair is home to a large Cargill ethanol plant, giving the company a major customer in the same city.

Dorman said Albert Lea and state officials worked hard on recruiting Novozymes. “This is very disappointing for our community and the people who all worked so hard to get us as far as we got. But there is no prize for anything but first place. I hate losing.”

He added that some companies, not Novozymes in particular, might be shaky about coming to Minnesota because of uncertainties as a result of the renewable energy mandate of 20 percent by 2025.

“I do hear more and more companies concerned about the renewable energy standard in Minnesota,” Dorman said. “No one has done the modeling as to its impact on the cost of electricity as we move toward 2025.”

He did mention the mandate has generated a lot of interest in Minnesota from the renewable energy sector. A recent example is the proposed 400-megawatt Bent Tree Wind Farm for Freeborn County, a positive development in recent economic development efforts for the Albert Lea area. When done, it would be the largest wind power project in Minnesota. The applicant is Wisconsin Power & Light, a subsidiary of Alliant Energy.

On the Internet: Novozymes, Alliant Energy, Albert Lea Economic Development Agency, Omaha Public Power District.