By SCOTT NILES Courier staff writer
June 25, 2008 12:19 am
—
OTTUMWA — Unity Ethanol officials remain optimistic about the creation a of an ethanol plant in Wapello County, but more investors for the project are being sought.
“We can’t say that it will happen yet, because the key to ethanol is getting the investors lined up and I think the delay we have got so far is not moving as rapidly as they thought ... ” said Wapello County Supervisor Jerry Parker.
“It all comes down to the financial portion of it,” said Unity Ethanol’s Chief Operating Officer Jason Egli. “It has nothing to do with the supply of corn.”
“The big delay is not starting anything until we are 100 percent financed. There is no need to start a project until you can finish it,” said Unity Ethanol Board Secretary Tom Fullenkamp.
Fullenkamp said the organization is close to acquiring all the financing they need.
“These are large-scale investors and they want to know what exactly they are investing in and how the process works. They want to know where their money is going to be spent,” he said.
Egli said the cost of the facility is nearly $250 million.
“It is all coming from financing,” he said.
Egli said the organization has received one main grant for the project — a RISE grant — Revitalizing Iowa’s Sound Economy.
A week ago the Wapello County Board of Supervisors approved another extension for the location of the facility. That gives the investors another six months to gain the proper financing.
“We hope to have it started within six months,” Egli said.
“It was a week ago [Tuesday] that they took out the last extension,” said Parker, adding this is the organization’s third extension on the land.
“We were told by an official of the company that they probably wouldn’t need another extension because things would be wrapped up during this period. They think they will be able to complete financing before [December],” Parker said.
Egli said the organization hopes to have the financing secured by the end of July.
The extension on the land options gives Unity Ethanol “first dibs” on the land should another party express interest before the extension date has expired.
If built, the plant will be located just north of the old county home in Wapello County.
“No one else that deals with us is interested in it now,” Parker said.
He said the county has also taken a somewhat active role in the facility by selling some of the land to the Wapello Rural Water Department in order to build an extra water supply system for the facility.
“They need to put in bigger tanks, and to do so, they needed more land. I don’t think they have put them in yet, but they will probably do that this summer,” Parker said.
Egli said if the financing is complete, officials hope to have construction initiated by the third quarter of this year.
Speculation over a possible ethanol glut and the lower yields this year will not impact the Wapello County facility, officials insist.
“The economic conditions will not affect this plant because it will be two years before we get into production. We think these things will be straightened out before then,” Fullenkamp said.
Scott Niles can be reached at (641) 683-5360 or via e-mail at sjniles@mchsi.com.
Copyright © 1999-2008 cnhi, inc.