Ultrasystems Inc. said the federal Farmers Home Administration has agreed to guarantee 90% of a $20-million loan the company made to Dawn Enterprises, a North Dakota partnership which was formed to own and operate an ethanol refinery in Walhalla, N.D.
Irvine-based Ultrasystems is 17% owner of the project, which produces 11.3 million gallons of ethanol each year from about six million bushels of barley.
The refinery has been running at full capacity since September, said Phil Stevens, Ultrasystem's president.
The project cost $32.8 million to build and is the largest barley-to-ethanol refinery in the world, Stevens said. Issuance of the FHA guarantee releases Ultrasystems from its obligation to guarantee the $20-million debt financing of the project.
Ultrasystems is an engineering and development company that specializes in power-related projects and defense and space systems activities. For the first nine months of 1985, the company reported net income of $5.69 million, compared to net income of $4.79 million for the prior year.
Full-year results are expected to be released Monday.