By CAROL WERSICH, Evansville Courier & Press staff writer
cwersich@evansville.net
A $125 million ethanol plant is being proposed for a site adjacent to Cargill grain elevator in Mount Vernon, Ind.
Dallas-based ASAlliances Holdings LP, the development company of ASAlliances Biofuels LLC, revealed its plans to have the facility built as early as this fall.
ASA and Cargill are considering service arrangements similar to those in place or under consideration at four previously announced ASA projects in Nebraska, Ohio and elsewhere in Indiana. Under the arrangement, Cargill would provide the plant with corn and services, such as energy and risk management, logistics expertise and the marketing of the ethanol and dry distiller grain products, which can be used in cattle feed.
The proposed facility in Mount Vernon would produce 100 million gallons of fuel grade ethanol and 315,000 tons of dry distiller grain annually, according to ASAlliances Holdings.
The facility would bring nearly 55 full-time jobs, officials said.
The ASA news comes on the heels of a recent announcement that a group of private investors, including some from the Henderson, Ky., area, are proposing a pair of ethanol plants be built in Western Kentucky.
The backers are looking at multiple sites in the Henderson-Union-Webster-McLean county area that Northwest Kentucky serves, including the Henderson County Riverport.
Northwest Kentucky, the riverport, Kenergy Corp. and private investors are participating in a $35,000 study concerning the feasibility of converting corn into ethanol in Western Kentucky.
ASA expects to begin construction in the fall on the Mount Vernon plant. The plant is expected to be fully operational in 18 to 24 months.
The construction start, however, is contingent on the successful completion of all commercial negotiations and acquisition of all necessary permits, the officials said.
Mount Vernon Mayor Rosemary Knowles applauded the plans.
"The economic impact of a project of this magnitude is staggering for a community the size of Mount Vernon," she said in a statement.
"This projects provides jobs, increases the tax base and stimulates the economy with construction jobs. All of these things add to an improved quality of life," the mayor added.
The Indiana Economic Development Corp. and state Department of Agriculture worked together to provide an incentive package that helped secure the proposed ethanol plant.
Incentives include training grants, and up to $137,000 in infrastructure assistance to the local community and up to $3 million in tax credits, based on anticipated employment and capital investment levels.
ASA representatives cited a number of attractive features about Mount Vernon that helped to cinch the deal, including a significant corn supply, rail-line and highway access, access to ethanol and distiller grain markets and the established Cargill facilities.
"Having barge access to the Ohio River is a key attribute," said ASA Chief Operations Officer Mike Slaney.
Indiana Lt. Gov. Becky Skillman, who also is the state's secretary of agriculture and rural development, said she was grateful that ASA is committed to Indiana's economy, it agriculture industry and its working Hoosiers.
"Indiana's growth in the biofuels industry takes many partners," she said.