DAKOTA CITY, IA --- Plans to build a biodiesel plant near Hardy, Iowa, have been scrapped because of rising costs for construction and raw materials, the Chicago Tribune reported.

The Humboldt County Board of Supervisors last week decided to terminate an agreement between Future Energy and the Iowa Department of Economic Development.

In 2006, Future Energy drew approval for $400,000 in funding to construct a $75 million biodiesel plant near Hardy. But since that time, the company abandoned plans to use any of the benefits awarded by the Iowa Department of Economic Development through the Iowa Value-Added Agricultural Products and Processes Financial Assistance Program, as well as the High Quality Job Creation program.