WOODLAND - An ethanol plant may one day replace the
Spreckels sugar beet processing plant that closed at the end
of last year, say area officials concerned with the economic
development of Yolo County.
Before its closure, the Spreckels plant provided a total of
324 on-site jobs and processed beets for more than 185 growers
in the Sacramento region. The facility also generated
approximately $70 million in annual revenues for the area.
The plant's demise was just one in a series of recent
hard-hitting economic blows to Yolo County. Last year the San
Ramon-based Tri Valley Growers filed for bankruptcy, and the
year prior, the Davis-based Hunt-Wesson tomato processing
plant also shut down.
In light of these facts, the possibility of an ethanol
plant in the city of Woodland is a welcome opportunity. But
local officials are careful not to express too much enthusiasm
for the project.
Though several unnamed groups are considering the project,
at present an ethanol co-op made up of Minnesota corn growers
is the lead agency interested in the Spreckels site. Corn can
be used to produce ethanol, as can other products such as
sugar cane.
However, the Minnesota co-op would provide only 50 percent
of the capital needed to begin the project. The other half of
the funding probably would have to come from local growers,
said Yolo County Farm Bureau President Casey Stone.
"Most farmers would like to see something happen, but
they are extremely cautious after the recent Tri Valley
fiasco," he said. "If the business plan gets
completed, we will probably see some forward motion and more
interest. (But) I don't have anybody banging on my door with
an investment check in hand."
Because the size of the potential facility is unknown, the
cost of building the plant is unknown as well. Stone said the
plant most likely would produce 15 to 20 million gallons of
ethanol, which is about the size of a start-up facility.
While several other areas of the state are being considered
as potential ethanol facility sites, the city of Woodland has
several advantages that continues to attract potential
investors.
Bryce Birkman, executive director of the Woodland Economic
Renaissance Corp., said Yolo County's stable yield of corn
crops make the area attractive for potential investors.
Furthermore, the infrastructure at the Spreckels facility
is similar to that of an ethanol plant. For example, it has
many of the structures needed for ethanol production, as well
as a large natural gas main and a rail spur, said Stone.
But the environmental concerns would be much stronger here
than in the Midwest, where the majority of ethanol plants are
located. Also, the cost to produce corn is higher on the West
Coast; this may impact the amount of local corn purchased
versus corn that is imported from the Midwest, Stone said.
"I believe that is why it is critical for local
growers to have a piece of the action. If an outside processor
were to come in with no local participation, most of the corn
would probably be imported," he added.
Also, the facility may be located in a flood zone, which
could be a concern as Woodland is considering several
solutions to potential flooding problems identified by the
Federal Emergency Management Agency. Stone said he hopes to
hear more on this matter soon.
The majority of the ethanol produced at the plant would be
used as a gasoline additive. As an additive, ethanol would
make up 10 to 15 percent of a fuel mix, said Stone.
Some believe gasoline mixed with ethanol provides better
air quality. However, the issue of environmental benefits is
controversial. But one clear advantage of ethanol is that it
is a renewable resource that could lead to a lesser dependence
on foreign oil, Stone added.
Phil Cherry, a project development director for the
Lafayette-based Alisto Engineering firm, added that ethanol
also could be used for certain types of alternative fuel
vehicles.
Cherry is working on a grant to fund a feasibility study
and business plan; the grant deadline is July 27.
Overall, Birkman said he is pleased at the possibility of
an ethanol plant in Woodland. The plant would not only provide
alternatives for the state's vehicles, but it would also
provide viable alternatives for local growers.
"I think that with agricultural regions in the United
States ... we need to find and use alternative uses for crops,
not only to sustain the farm, but to improve quality of
life," said Birkman.
- Reach Sumita Mukherji at smukherji@davisenterprise.net |