Local ethanol plant advances

Facility could support other alternative technologies

By TOM KANE

INDIAN ORCHARD, PA - Despite national news reports on the disadvantages of ethanol from corn, a local group called Indian Orchard Renewable Energy, LLC, is moving ahead to purchase a large tract of land on the west side of the Lackawaxen River to build such a plant.

The land purchase of 91 acres, which is located behind Kost Tires and Mufflers on Route 6, will take place this week, according to Dave Williams, the president of the organization.

“We have a group of local investors, who are putting down $40,000 with the remainder to be raised through investment and bank loans,” William said.

The entire project, which will cost around $160 to $170 million, will include more than the ethanol plant.

“It will be a place where companies who are working for renewable energy can be located,” he said. “This could include manufacturers of wind energy, solar panels, energy saving materials and things like that.”

Williams claims that the project will eventually get nearly $20 million in support from the United States Department of Agriculture.

Williams said that he has been in communication with some large banks, mainly the Farm Credit Bank, which finances 40 percent of ethanol plant projects in the nation. He said his group was working with Pennsylvania to get funding from banks.

The controversy centering around ethanol from corn has been heating up in the national and international press with accusations that Third World countries will be adversely affected by the rising price of corn, driving up food prices so much so that poor people will become unable to feed themselves. It is also claimed that rain forests will be cleared and corn grown on them in order to benefit from the rise in the market.

“What they’re saying against ethanol from corn is a joke,” he said. “It’s a myth created by the Grocery Manufacturers Association and the oil companies, which have been putting $30 million into this campaign.”

Williams said that the project will be done in stages and will not be looking for the total amount right away.

“We’ll buy the land and we’ll build the bridge, and then we’ll have some equity,” he said.

Because the property is on the west side of the Lackawaxen, it will be necessary to build a bridge to be connected with Route 6.

Williams is expecting to break ground by January 2009, with a possible opening date sometime in 2010.

Against the tide

The tide has clearly turned against using corn to produce ethanol.

Pennsylvania is the first state to attempt to move away from corn as the primary source of ethanol. At a meeting last week in Harrisburg, Governor Ed Rendell cited the abundance of cellulosic raw material in the state, which avoids the problems that using corn causes.

In recent weeks, presumptive Republican presidential candidate John McCain has spoken in favor of slowing down corn-to-ethanol production.

Locking up corn-for-ethanol production has driven up food prices for the poor around the world and hurt many farmers who can’t afford the higher feed prices, McCain said.