9/26/2006 8:06:00 PM Ethanol plant to be operational in 2008
AMANDA RODEHEFFER/Advocate photo
Now, it’s a bean field at the intersection of Jaysville-St. Johns and Sebring-Warner Roads. In 2008, it will be Anderson’s first Ohio ethanol plant, producing up to 110 million gallons of ethanol annually. Site work for the new plant is scheduled to begin sometime today.
Associated Press
GREENVILLE - The Andersons, Inc., announced late Monday that it had purchased property in the Greenville Industrial Park and that preliminary site work had begun.
"We are aggressively pursuing our ethanol program and we appreciate the warm reception and cooperation we have received from the City of Greenville, Darke County and area economic development representatives," said Neill McKinstray, Vice President, Ethanol Division, in a press release.
"Pending final regulatory approvals, the Greenville site will be the fourth ethanol facility in which The Andersons has an investment and will provide services."
Greenville Mayor Greg Fraley said he was happy to see the efforts of so many come together.
"We are terribly excited that after two years, eight and a half months of work to get the project completed," he said.
"We are fortunate to have found a company that will be a strong asset to Greenville and Darke County. When it comes to ethanol, we could not be more pleased that we have The Andersons."
Darke County Economic Development director John Greendyke echoed Fraley's sentiments.
"I think it's a great win for economic development for Darke County," he said. "Great team effort with the CIC (Community Improvement Corporation), the county and the city."
Fraley said the land was purchased Friday, but no announcement could be made until state approval was received Monday.
He said the company was already working to get the ground excavated, however no actual concrete work can begin until The Andersons receives its air permit.
"They received their draft copy Thursday," he said. "There will be a 30-day public comment period followed by a public hearing before the permit can be issued."
According to The Andersons press release, the facility will produce 110 million gallons of ethanol annually, plus 350,000 tons of distillers dried grain (DDG), an animal feed ingredient.
The project, which is still subject to approval by The Andersons Board of Directors, could be operational as early as the first quarter of 2008 and have a workforce of up to 40 employees.
Although city and county efforts are over regarding the approval of the project, work still needs to be done by both entities.
"Our next step in the course of the year will be developing the utility infrastructure in the park," Fraley said.
This includes extension of water and sewer lines, and the development of wells for raw water.
"The taxpayers will not be subsidizing this work," Fraley said. "The costs will be paid by The Andersons with user fees."
He added that the county's job will be the reconstruction of Sebring-Warner Road.
"That will be paid for through tax increment financing (The Andersons taxes will go directly to pay for the road improvement)."
Fraley acknowledged that from the community's perspective there are unknowns, but he believed that, ultimately, they will be pleased with the project when it is finished.
He added that, overall, the community has been supportive.
"I would like to express gratitude to the tremendous amount of support I've received from the community about this project," he said.
While it took nearly three years to happen, the time spent helped convince The Andersons that Greenville was the site they wanted.
After more than a year of dealing with potential ethanol operations, both Fraley and Greendyke spent a week in Kansas City in June 2005 learning about the industry.
"We toured a plant, sat through classes for a whole week - suppliers, contractors - it was a real learning experience for us," Greendyke said.
The learning experience paid off.
"I think the biggest reason we got this project done is because city and county officials spent many, many hours educating themselves on ethanol... and that really paid off in getting Andersons to come to Greenville," Fraley said.
"We knew what we were talking about... it really made the difference."
Greendyke said The Andersons first contacted them in April.
"I told Greg that if they called back the next day, we'd have a shot," Greendyke said. "They called back the next morning... and it's been a hard run ever since."
On Sept. 19, Greenville City Council approved ordinances allowing zoning changes necessary to construct the plant, as well as extending the enterprise zone that will support tax abatements for the project.
On Monday, the Ohio Tax Credit Authority approved a 50 percent tax credit for a 7-year term for the development and construction of its plant. The value of the tax credit is estimated at $207,000 over the term and requires The Andersons to maintain operations at the project site for 14 years.
Currently, The Andersons, Inc. is the manager of, and the largest individual investor in, The Andersons Albion Ethanol LLC, a 55 million gallon facility opened in August, and The Andersons Clymers Ethanol LLC, a 110-million-gallon facility scheduled to be completed in the first quarter of 2007. The company also is a minority equity investor in Iroquois Bio-Energy Company, LLC, a 40-million-gallon facility in Rensellaer, Ind., scheduled to be operational in the first quarter of 2007.
The Andersons has interests in the grain, ethanol and plant nutrient sectors of U.S. agriculture, as well as in railcar marketing, industrial products formulation, turf products production, and general merchandise retailing.
Founded in Maumee, Ohio, in 1947, the company now has operations in seven U.S. states plus rail equipment leasing interests in Canada and Mexico.
A public hearing on the air permit is scheduled for 7 p.m. Oct. 26 at Shawnee Prairie Preserve. Written comments may be sent to Michael Maleski, Regional Air Pollution Control Agency, 117 S. Main St., Dayton, Ohio 45422-1280.
Bob Robinson is the managing editor for the Daily Advocate. He can be reached at brobinson@dailyadvocate.com.
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