Chicago supplier sues Energae for $81,000A Chicago-area company has filed a breach of contract lawsuit against Energae LP, a Clear Lake, Iowa, “green energy” company that has sought funds from North Dakotans in the past five years.
By: Mikkel Pates, Agweek
A Chicago-area company has filed a breach of contract lawsuit against Energae LP, a Clear Lake, Iowa, “green energy” company that has sought funds from North Dakotans in the past five years.
Ingredion Inc. of Westchester, Ill., filed suit in Cerro Gordo County District Court in Mason City, Iowa, on Feb. 6. The company is asking for $81,581 from Energae, a biofuel manufacturing business.
According to the lawsuit, Energae entered into a contract with Ingredion on Sept. 27, 2012. Ingredion says it provided products to Energae and charged $80,402. It says Energae made one payment of $2,500 on May 20, 2013, but owed $77,902. With interest at 1.5 percent per month, the total owed is $81,581, the suit says.
Ingredion is a leading global ingredient solutions provider for food, beverage, brewing, pharmaceutical and industrial customers. According to its website, the company turns corn, tapioca, wheat, potatoes and other materials into products including starches, sweeteners and nutritionals. Energae made ethanol from various products at a Hopkinton, Iowa, plant that it had invested in. That has been shuttered for several months, as well as a separate plant at Cedar Rapids, Iowa, that turned biofuels into electricity.
An Ingredion spokesperson did not immediately return calls from Agweek. Kathryn Barnhill, an attorney for Energae did not immediately return a phone message.
Two sets of North Dakota investors in Energae have filed actions to put Energae LP into receivership. The first case was settled, but the second is pending. Alan Rosca, a lawyer for both of the cases, declined to talk with Agweek.