Ethanol plant moves forward
By Shannon Filonczuk
Saturday, March 17, 2007 11:46 PM PDT
The proposed ethanol production plant for Payette County moved a step closer to reality Tuesday.
Payette County Commissioner Dennis Codr singed an agreement to give the preliminary feasibility study contract for the plant to Voudrie Business Development Inc. Voudrie Business Development Inc., now has 120 days to plan multiple aspects of the proposed ethanol plant.
Codr said the idea for an ethanol plant for Payette County evolved out of a Jan. 11 meeting he attended in Boise.
Codr said the pros and cons of such a plant locally were discussed and Codr said he did not hear many cons on the idea.
His interest was sparked, he said.
The feasibility study is a crucial phase on the road to building the plant, Codr said.
Codr spoke to the Ontario Lions Club Tuesday afternoon as part of a wide-sweeping effort by the Payette County Commissioners to educate the local communities about the benefits of an ethanol plant.
Codr put the proposed plant’s economic impact in perspective. According to Codr, the impact of the plant locally would be much like the influence of a similar plant in Luverne, Minn. Codr estimates the Minnesota plant produces a $15 to $1 return for every dollar of ethanol produced.
Codr said an ethanol plant makes such a big impact on the local economy because it pays good prices to farmers for produce and also creates many accessory jobs.
The plant in Luverne made an immediate impact, Ontario Lions Club member Jim Thomssen said.
“It turned around that town and it saved family farms,” Thomssen said.
Codr said he expects a local ethanol plant to yield a $8 to $1 dollar return for every dollar of ethanol produced.
Once the feasibility study is completed, Codr said, he will be able to provide a more accurate forecast of the local economic impact of the plant.
Right now, Codr said the commissioners are planning for the plant to produce 25 million gallons of ethanol a year and employ 45 to 50 people. The average pay at the plant would be nearly $16 an hour, Codr said.
A site selection committee has been created to help decide where in Payette County the plant will be built. Six sites have been chosen and presented to the consultant of the feasibility study.
The feasibility study cost $75,000 and it will all be paid for by grants the commissioners have secured, Codr said.
The study tackles such issues as how much the plant will cost, how much it will cost to run, how much the plant will make, where the market for ethanol is along with plant configuration, flow diagrams, operating personnel requirements and several other key issues.
The Voudrie Business Development Inc. has agreed in the consultant contract has also the right of first refusal in any further development activities.
After the feasibility study is complete, Codr said he and the other commissioners will form a limited liability company so that local farmers can own the controlling majority of the plant.
If local farmers do not have the funds to buy into the plant, Codr said there are financial organizations and real estate groups interested in funding the plant.
“It will get built, we just don’t know by who,” Codr said.
Steps after securing financing to build the plant are including engineering of the plant, site preparation, equipment selection, a plant construction process plan and finally construction of the plant.
