By Geoff Frank, Bluffton News-Banner
Broin Companies will not pursue development of an ethanol plant in Wells County after all.
Broin officials revealed Thursday evening that they have abandoned plans to move forward with their Wells County project.
Responding to recent requests from The News-Banner for an update on the project, Mike Lockrem, director of public relations for Broin, said the company has shifted its focus elsewhere.
The company had announced intentions Nov. 10 to build a 60 million gallons-per-year corn-processing ethanol plant here through a company to be known as Wells County Ethanol LLC.
The facility would have been located south of Bluffton on a 203-acre tract near the intersection of Hoosier Highway and Meridian Road.
"Broin Companies has decided to cease any further development of Wells County Ethanol in Bluffton," wrote Lockrem.
"There is a great deal of competition in the state of Indiana for quality sites and while we are committed to meeting our strategic plan of building multiple plants in the region, we have shifted our focus to areas that in our view have greater potential for long-term success," he said.
"The leaders of Bluffton have been extremely supportive of our project and we thank them for their efforts and support," continued Lockrem.
"This decision is certainly not a reflection of their efforts, the city of Bluffton, or Wells County, but rather a decision that we believe to be in the best interest of the company," he said.
When they made their November announcement, Broin officials were excited about the proposed Wells County site.
They pointed to its road and rail access, along with its proximity to a major natural gas pipeline and a nearby REMC substation.
"It's very unique to get all of those necessities at the same place," said Brian Minish, vice president of operations, at the time.
Bob Berens, director of site development for Broin, indicated the company had done extensive market studies before selecting Wells County.
Wells County's "other" proposed ethanol project continues to move forward with its development steps.
Indiana Bio-Energy LLC has been busy with site preparation work for its planned 100 million gallons-per-year ethanol plant at the southwest edge of Bluffton.
Indiana Bio-Energy officials hope to hear - possibly as soon as today - regarding action by the Indiana Department of Environmental Management on the company's requested air-quality permit for the plant.
Foundation work on the IBE plant cannot begin until the air-quality permit is approved.
IBE officials previously have acknowledged they would be buying corn from the same sources as Broin, but did not look at the proposed Broin plant as a competitor.
When Broin made its initial announcement, some questions in the community were raised concerning potential corn supplies, especially given the growing number of ethanol facilities under consideration in Indiana.
Officials from both Broin and IBE, however, dismissed concerns about availability of corn as an issue.
While both companies planned to obtain much of their corn by truck, each also had built railroad access into their plans that would allow for corn to be brought in by rail when needed.
Since the Broin announcement on Nov. 10, a number of steps have moved the Indiana Bio-Energy project forward.
IBE began earth-moving work Nov. 13 to prepare its site for the planned arrival of construction crews from Minnesota-based Fagen Inc.
Four Fagen representatives arrived in Bluffton last week to begin preliminary tasks. The company now has a trailer at the IBE site, 1441 S. Adams St.
IBE also has announced that the funding process for its project was completed Dec. 22.
A major equity investment was made by VBV LLC, a joint venture of NTR's Bioverda and Sir Richard Branson's Virgin Group.
As part of the capitalization, the IBE board, which was predominantly made up of the initial local investors on the project, will reorganize March 21 to give VBV a majority representation on the board.
The November announcement of Broin's plans to locate an ethanol plant in Wells County had generated some roads discussions among local government officials.
The previously announced IBE plant already was expected to add significantly to truck traffic to and from the southwest Bluffton area.
Bluffton Mayor Ted Ellis and County Commissioner Kevin Woodward had spent time looking at maps following the initial Nov. 10 announcement by Broin.
Broin's plans had called for funneling trucks to the south from its expected entrance along Meridian Road to Ind. 218.
Mayor Ellis had pointed to possible synergies in road improvements that would be needed for the two plants.
County officials also had welcomed the Broin announcement of plans to locate here, but held off on extensive roads planning until the two companies' ethanol plans were further along.
At the time of the Broin announcement on Nov. 10, Woodward pointed to the need to make sure the proposed ethanol plants actually would become a reality.
"Once we have a for-sure, for-certain what's there, then we'll react," said Woodward.
"Prior to that, I don't want to go step out for something that wouldn't be there. Let's get somebody anchored in first before we step out," said Woodward.
Commissioners president Paul Bonham echoed the theme recently at a Jan. 19 meeting hosted by the city on planning for improvements along Adams Street, where Indiana Bio-Energy plans its facility.
"We haven't put a lot into it right now, because we were kind of holding back and seeing what Broin is going to do, if they're even considering it," said Bonham.
Officials from both Indiana Bio-Energy and Broin Companies separately had pointed out that not all of the many announced ethanol plants in Indiana and wider areas under consideration actually will be built.
Speculation in local government circles recently has centered around the lack of action by Broin in pursuing zoning and planning approvals that would have been needed for the Wells County location.
The company was expected to need rezoning of its proposed site and approval of a development plan for the planned ethanol plant.
At its Nov. 10 meeting, Broin officials had indicated intentions to move quickly on the project.
At that time, they indicated hopes to be on the Area Plan Commission's agenda in December, but already were too late at that point for that meeting.
Recent News-Banner articles have mentioned uncertainty among local government officials that began when Broin did not petition to be on the APC agendas for either the January or February meetings.
Wells County Ethanol would have been the 30th ethanol plant built by Broin Companies, which is based in Sioux Falls, S.D.
The company had planned to begin construction this spring with an expected completion date of spring 2008.
The proposed $115 million Broin project would have created 38 to 40 full-time jobs with an annual payroll and benefits total estimated at $1,800,000.
Broin also is constructing Premier Ethanol near Portland, Ultimate Ethanol near Alexandria and Summit Ethanol near Leipsic, Ohio.
Broin describes itself as the largest dry-mill ethanol producer in the United States.
News-Banner Managing Editor Joe Smekens contributed to this article.