New ethanol plant to make $180 million investment in Henry County

Paul Hines, Courier-Times Staff Writer

A $180 million ethanol plant near Mount Summit would bring 50-60 jobs if the company gets zoning approval in April.

Julian Gehman, founder of Blue River Ethanol LLC, said Tuesday he doesn't see too many problems ahead. He said the plant should be operational by 2009.

An ethanol plant has been a priority of the New Castle-Henry County Economic Development Corp. for several months. The task of attracting the plant was given to Jim Small.

"It's the largest capital investment ever in Henry County," Small said.

The 46-acre factory would be located on a 200-acre plot southeast of Mount Summit on Ind. 3 between Roads 300 and 400 North. It needs rezoning from agricultural to industrial use. The payroll including benefits would be about $5 million annually.

Railroad Access a Key

"I've been so excited," said Betty Gipe, president of the Mount Summit Town Council.

Most of the grain will enter the plant through the Norfolk Southern Corp. railroad that runs west of the property. A looping road will travel around the plant. The grain will be unloaded at the southern portion of the plant.

Twice each week the plant will ship in what is called a unit truck, which consists of 75-100 railroad cars loaded with corn to supply the process. The plant will produce 100 million gallons of ethanol per year.

Many companies are looking for a community that has quick access to an interstate. For Blue River Ethanol, access to a railroad was more significant.

"I'm just glad you needed rail service," Gipe said to Gehman.

If the proposed site is completed, the Henry County location would sit amidst a cluster of ethanol plants already proposed. Currently there are proposals for plants in Madison, Delaware, Randolph and Rush counties. Another is proposed on the Rush and Fayette County line.

Nationally, Gehman says there is a market for 15 billion gallons of ethanol. Right now there are plants proposed that will produce 13 billion gallons each year.

"There's a little head room to go," Gehman said.

There are contingencies if the corn market continues to inflate. The plant can be idled while still retaining all of its workforce while market prices realign.

Giant Still Making Moonshine

Gehman describes the plant as a "giant still" making "moonshine." He added the smell will be "slight." Gehman said ethanol technology has improved, and now air can be better filtered to reduce the smell.

Of the $180 million, Gehman said the largest expense is buying and connecting the piping needed for the plant.

The company plans to ask for a 10-year tax abatement. Groundbreaking should happen sometime this fall. The construction will take about 18 months.

The ethanol plant won't be a competitor with the biodiesel plant now under construction in Middletown. It's possible the Mount Summit plant could even be a vendor for the Middletown plant and supply it with corn oil.

Henry County was one of seven sites considered.

Gehman said some consideration is being given to putting a filling station at the plant where motorists can buy E85 ethanol.

Small, who has been working on the project for several months, was one of the reasons Gehman began to seriously consider Henry County. Gehman said Small's help and persistence played a factor in the initial process.