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New use eyed for closed sugar plant
By Sumita Mukherji, The Davis Enterprise
July 10, 2001
 
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