Squeezing beans was on the mind of the Cayuga County Industrial Development Authority as it approved the application process for a would-be producer of local biodiesel fuel.
The Auburn BioDiesel Corporation (ABDC) presented its plan to produce biodiesel fuel from soybeans to the IDA at its regular meeting Wednesday afternoon and was unanimously approved to proceed with its application.
“The project is already underway and proceeding on many levels,” David Colgrove, ABDC president, explained. “The county IDA has specific funding sources available that we are applying for, some 20 categories.”
The three-phase reconstruction project will include 570 acres of the former Clinton Corn/Archer Daniels Midland corn syrup processing facility in Montezuma.
Phase I, a $70 million project, will establish a 30 million bushel soybean crushing operation to produce 30 million gallons of biodiesel fuel, George Farenthold, vice president of ABDC said.
"This is really the start of the process of engaging the IDA," Steve Lynch, IDA executive director,said.
Funding for the project will be raised from outside private sources, Colgrove said. This money will be complemented and raised as public sources come in.
"There is no way to know when the sources of public funding will come through," Colegrove said. "There are 100 categories of potential funding sources for biodiesel. Which applicants qualify and receive the funding is subject to restrictions. In general, public money must follow private money. The project has to be viable and fully funded."
"We have a variety of commitments from several sources," he said. One particular investor was present at the IDA meeting to encourage the project.
"During the application process, the company's attorneys and IDA attorneys work to determine the structure that works best for the company and the best deal," Lynch said. "If benefits affect the taxing jurisdiction, then public hearings are held and environmental reviews are made."
He said that the IDA is a conduit that benefits pass through from the state. The company can be eligible to receive tax free bonds, which are cheaper than if it went out and found private bonding.
"Once credit is extended to the company by a bank, bonds can be issued through the IDA, which is a public benefit corporation," Lynch said.
Five members of the ABDC board of directors were at the meeting: president David Colgrove; interim CFO Jon Verbeck, CPA and financial consultant; vice-president and controller Cynthia Day, of Skaneateles, also secretary to the board; vice president of administration Pamela Kirkwood, of Auburn, CCC trustee and local management consultant; and vice president of government and public relations George Farenholt, village of Aurora trustee.
Colegrove has worked on the project for more than three years. During that time, board members have contacted local farmers and soybean producers, encouraging their participation, promoting interest in soy bean production, as soy meal producers or as biodiesel consumers.
ABDC will buy local soybeans and crush them locally to get soy oil for feedstock (raw material) to make biodiesel fuel.
The mechanical soybean crushing operation creates a high quality, high protein soymeal which can then be used for livestock feeds.
Besides buying Cayuga County soybeans and making both soy meal and biodiesel fuel, the corporation's goal is to retrofit the facility to be ready to produce by the end of Phase I. While no timeline has been established yet, Colegrove said it would be at least a year before any groundbreaking took place.
Staff writer Kathleen Barran can be reached at 253-5311 ext. 238 or kathleen.barran@lee.net
“The project is already underway and proceeding on many levels,” David Colgrove, ABDC president, explained. “The county IDA has specific funding sources available that we are applying for, some 20 categories.”
The three-phase reconstruction project will include 570 acres of the former Clinton Corn/Archer Daniels Midland corn syrup processing facility in Montezuma.
Phase I, a $70 million project, will establish a 30 million bushel soybean crushing operation to produce 30 million gallons of biodiesel fuel, George Farenthold, vice president of ABDC said.
"This is really the start of the process of engaging the IDA," Steve Lynch, IDA executive director,said.
Funding for the project will be raised from outside private sources, Colgrove said. This money will be complemented and raised as public sources come in.
"There is no way to know when the sources of public funding will come through," Colegrove said. "There are 100 categories of potential funding sources for biodiesel. Which applicants qualify and receive the funding is subject to restrictions. In general, public money must follow private money. The project has to be viable and fully funded."
"We have a variety of commitments from several sources," he said. One particular investor was present at the IDA meeting to encourage the project.
"During the application process, the company's attorneys and IDA attorneys work to determine the structure that works best for the company and the best deal," Lynch said. "If benefits affect the taxing jurisdiction, then public hearings are held and environmental reviews are made."
He said that the IDA is a conduit that benefits pass through from the state. The company can be eligible to receive tax free bonds, which are cheaper than if it went out and found private bonding.
"Once credit is extended to the company by a bank, bonds can be issued through the IDA, which is a public benefit corporation," Lynch said.
Five members of the ABDC board of directors were at the meeting: president David Colgrove; interim CFO Jon Verbeck, CPA and financial consultant; vice-president and controller Cynthia Day, of Skaneateles, also secretary to the board; vice president of administration Pamela Kirkwood, of Auburn, CCC trustee and local management consultant; and vice president of government and public relations George Farenholt, village of Aurora trustee.
Colegrove has worked on the project for more than three years. During that time, board members have contacted local farmers and soybean producers, encouraging their participation, promoting interest in soy bean production, as soy meal producers or as biodiesel consumers.
ABDC will buy local soybeans and crush them locally to get soy oil for feedstock (raw material) to make biodiesel fuel.
The mechanical soybean crushing operation creates a high quality, high protein soymeal which can then be used for livestock feeds.
Besides buying Cayuga County soybeans and making both soy meal and biodiesel fuel, the corporation's goal is to retrofit the facility to be ready to produce by the end of Phase I. While no timeline has been established yet, Colegrove said it would be at least a year before any groundbreaking took place.
Staff writer Kathleen Barran can be reached at 253-5311 ext. 238 or kathleen.barran@lee.net
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dan w wrote on Nov 1, 2008 2:48 AM:
Angel wrote on Jul 16, 2008 3:03 PM:
Whenever will this country wake up and understand how the farmers have more than contributed to the world in all ways. "
Farmer's Gal wrote on May 25, 2008 10:23 AM:
Andy B wrote on Apr 18, 2008 10:12 AM:
Andy B wrote on Apr 18, 2008 7:44 AM:
gtr wrote on Apr 18, 2008 6:05 AM:
gtr wrote on Apr 18, 2008 6:04 AM:
misspgy wrote on Apr 17, 2008 11:38 PM:
mowen wrote on Apr 17, 2008 2:18 PM:
This sounds like a win win project. As long as making that Biodiesael fuel won't pollute our air or water. We have the finger lakes watershed system and the Great Lakes to think about while making this project work. If there is going to be pollution from the source of making the fuel. Well then I would reconsider. We are beneficial to a great supply of fresh water. It is polluted enough, we need to clean it up. Those efforts to clean up the lakes are ongoing and we do not need to add to it. Are all the cards on the table. It would be great to also have feed for animals. Another win. Instead of feeding our animals other animals parts in there feed. Which I think is a big mistake. This is also to make big bucks. I know of no company who wants to build a Biodiesal Plant and doesn't want to make money. If the plant can use the fuel to run the county. That is another what I am not sure about. I listened to the counsel and the dinner on the TV last week or the week before, and heard the proposal. I try to watch and listen to the counsel meeting. I say we really need to watch our backs on this one. If someone is building the plant for us. We also want to know it is going to be efficient. It may bring in more business, and the community, we will be prosper. All around. We need to be conscientious with the public with the use of the Plan and the real numbers. In building the facility and running it, and the income it makes. Soy beans may go a long way in helping save our economy. And it can be run on regular engines, with little adjustment. And the soy for our farmers, the feed it would make would pay for itself in a few years. As long as we think of our own farmers first, and are county, and not the best deal out there. This has to be for the county first. In my opinion. "