Vermillion County lands ethanol plant

TERRE HAUTE - Construction could start as early as next year in northern Vermillion County on a new fuel ethanol plant that could produce 100 million gallons a year.

Colorado-based Renewable Agricultural Energy and the Vermillion County Economic Development Council announced Thursday their plans for the plant near Cayuga.

Plans for the plant have been in the works since May, said Todd Gander, vice president, strategy and planning for Renewable, also known as RAE.

To find the site, RAE worked closely with the Indiana Economic Development Corp. "We've got a good company we're partnering with," said Ed Cole, executive director of the Vermillion County Economic Development Council. "We've got an excellent opportunity to bring this home."

The RAE plant will employ about 45 people and buy and process more than 36 million bushels of corn a year, most of which comes from growers in Vermillion County and surrounding counties.

The plant is expected to be a $145 million investment in the county, with $1.5 million payroll also going into the county, Cole said. Finalized plans depend on the final agreement on state and local incentives and are subject to appropriate regulatory permitting, according to a news release.

Tax increment financing was the biggest incentive used to bring the plant to Vermillion County, Cole said.

Every gallon of ethanol reduces U.S. demand for foreign oil, and the use of renewable fuel also is environmentally safer.

"The addition of another ethanol plant in Indiana is a big win for Hoosiers and for Vermillion County," said Michael S. Maurer, Indiana secretary of commerce and IEDC president, in a statement. "This project will add jobs, bring new opportunities for Hoosier farmers and create a renewable fuel that reduces our dependence on foreign fossil fuels."

According to the company's Web site, five factors play a role in site selection: transportation, feedstocks, utilities, expansion potential and community support.

"Cayuga meets all our infrastructure and corn-sourcing needs," said Don Panter, vice president for technology at RAE, in a statement. "The Cayuga site offers excellent rail and highway access and has on-site natural gas and electricity."

Ethanol is made from corn during a process in which the corn is ground, liquefied and fermented.

Resulting ethanol is recovered through distillation and the remaining solids are used to make a protein-rich animal feed.

"We're really excited to be a part of the community and a part of the larger Indiana community," Gander said in a phone interview late Thursday.