Washington Missouri - Ethanol Plant Forum Draws Large Crowd

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Ethanol Plant Forum Draws Large Crowd

By Sarah Wienke, Missourian Staff Writer

03/24/2006

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Strong local leadership and ready access to transportation are some of the keys to establishing an ethanol plant in Franklin County.

State Rep. Kevin Threlkeld said the county has the potential to meet both of those requirements. He emphasized that point Wednesday night during a town hall meeting called to make people aware of the potential the county has to support an ethanol plant.

At least 100 people, including farmers, state and local government officials, businessmen and potential investors attended the public forum in order to learn about a plant's potential and ask questions.

The meeting was held at Washington's city hall.

Threlkeld, who sits on the House Agriculture Committee, said he called the meeting because he believes Franklin County could be a prime location for an ethanol plant. He noted that an ethanol plant would create jobs, help the economy, and that utilizing ethanol will help lower the United States' dependence on foreign oil.

"We've got a list of things in our area that other parts of the state don't have," Threlkeld said. "If they can pull it off in Northern Missouri, we can here."

Ethanol is a clean-burning, renewable and domestically produced product made from fermented agriculture products such as corn. It is a cleaner and more efficient burning fuel and reduces carbon dioxide emissions.

Missouri currently is home to three farmer-owned ethanol plants in Macon, Craig and Malta Bend. A fourth plant is under construction in Laddonia and a fifth at St. Joseph. All of these plants are located in the northern part of the state.

Legislation currently pending in the Missouri General Assembly would require that nearly all gasoline sold in the state contain 10 percent ethanol, Threlkeld said. The proposed Missouri Renewable Fuel Standard (MoRFS) would help with expansion throughout the state by establishing a minimum content of ethanol that refiners must introduce into their formulas.

Jamey Cline, director of value enhancement for the Missouri Corn Growers Association, gave a presentation on ethanol and the benefits of establishing a plant in a community.

Cline emphasized throughout the meeting that the demand for ethanol will continue to increase as oil becomes more expensive and legislation mandating ethanol use goes into effect.

"If we don't get into the mix and do this in Missouri, the money and jobs will go somewhere else. It's our turn," said Cline.

According to a recent University of Missouri economic impact study, ethanol production in Missouri is expected to reach 350 million gallons annually by the end of 2008. This growth would create 5,613 jobs, generate $63 million in tax revenues and inject an estimated $726 million into the state's economy.

An ethanol plant would employ between 40 and 50 full-time employees, would provide another market for farmers to sell corn and get a better return on their product, Cline said. He added that the plant would positively impact the economy by providing construction jobs, and an increased demand for service industries to serve the plant, including restaurants, convenience stores and lodging.

Franklin County has several advantages as a site for a plant, Cline said, including its proximity to the Missouri River, Interstates 44 and 70, and a market in St. Louis, where over 100 million gallons of ethanol are used annually.

Threlkeld and Cline emphasized that strong and dedicated local leadership is the key to the success of an ethanol plant.

Cline and Threlkeld said that to build an $80 million plant, the local investment share would be 40 percent. The other 60 percent could be financed through a variety of lenders.

To raise that kind of capital on a grassroots level would take a dedicated board, Threlkeld and Cline noted. It also would need investors willing to wait several years for a return on their money, Cline noted.

Cline recommended forming a board including five counties in the region. Threlkeld said the first step is to form a board and gather "seed money" from investors. The board would hire consultants to conduct a feasibility study and create a business plan. The cost for both would be about $80,000.

After the plan is made and the funds are raised for the project, it will take at least one year to build.

The plant site would be on at least 100 acres, Cline said. Laddonia's plant sits on more than 110 acres, he noted. The site for a plant would need to be accessible to transportation, a natural gas pipeline and water.

He also noted that corn would have to be brought in from other parts of the state in order to meet the amount necessary to make ethanol. Cline said that one bushel of corn equals 2.8 gallons of ethanol. A 50-million gallon plant would need about 18 million bushels of corn per year.

County Commissioner Terry Wilson said the commission is looking into the feasibility of an ethanol plant and added that "there is a lot of potential to this."

He noted the county commission and the county's economic council will discuss the idea further.

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