Iowa startup Cellencor has started field tests at an ethanol plant in Minnesota on a microwave drying process that could cut energy costs, according to Alliant Energy (NYSE: LNT), which is working with Cellencor on the project.

The testing will run for eight days at the Corn Plus ethanol plant in Winnebago, Minn., a 49 million gallon per year facility.

"We are very excited about the potential of Cellencor's microwave drying system and the dollar savings and new profit streams it could bring to ethanol plants across the country," said Doug Litwiller, Alliant Energy Project Manager.

"This technology may not only replace more expensive natural gas-fired drying processes but it could also greatly enhance the market value of an ethanol plant's byproduct."

Madison, Wis.-based Alliant said its Interstate Power and Light unit started meeting with Cellencor about seven months ago and has helped the startup make connections with other business partners, including Corn Plus.

Alliant said Cellencor's technology has been tested at Iowa State University's Biomass Energy Conversion and initial estimates show that ethanol facilities could realize up to 20 percent or more in operating cost savings by using the process.

The company said Cellencor's system also adds enzymes prior to low temperature drying which could improve the nutritional value of the co-product by 10 percent to 20 percent.

Alliant said this could provide higher quality feed for cattle, swine or poultry which can be sold for a higher price than what current ethanol plants receive for their co-product.

After the testing at Corn Plus, Alliant said Cellencor plans to refine the design of its microwave drying process and move ahead with feed trials.