The Jamestown Sun
Although the permitting process is very involved, the Spirit Ethanol Plant is still looking at a September groundbreaking, Connie Ova, chief executive officer for the Jamestown/Stutsman Development Corp., told board members Monday.
Ova said she had talked with Duaine Espegard of the Newman Group last week, who said there are in excess of 100 permits required before groundbreaking can take place. She said if only an ethanol plant was planned for the site, it wouldn't be nearly as complicated. As it is, Great River Energy, Cargill and the Newman Group's Spirit Ethanol are partnering on the Spiritwood Energy Park with a $500 million price tag on construction and expansion projects.
"There are three big players. It's a huge project," she said. "And working with all those entities and agencies is complicated. The permitting process on this is horrendous."
Other issues have also surfaced. Originally, the ethanol plant had planned to use "gray" water from Cargill, rather than fresh water. However, the equipment is not warranted for 100 percent gray water, so instead the Newman Group has done a well test and applied for permits needed for piping water.
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Heating the plant is another issue facing the Newman Group. Until the GRE power plant is online in the spring of 2010 to supply heat, the ethanol plant will have to use propane. Ova said there isn't adequate natural gas at the site to supply the plant or the project would be under way. However, with propane being a more expensive heat source, delaying construction means a shorter period of time having to use it.
"It's more cost effective for the investors to wait to break ground later," Ova said after the meeting.
The longer the wait, the better. If the groundbreaking is in September followed by 16 months of construction the ethanol plant will go online early in the winter of 2009. It would be more than a year that the ethanol plant operates on propane before GRE is online to supply heat.
"They're being very smart with their investment dollars," Ova said.
Meanwhile, area grain elevators are either planning or have begun expansions, she said, readying the facilities for the expected increase in corn production.
"They're gearing up for the ethanol plant," Ova said.
GRE is still online to break ground in August. Ova said the company is ready to let bids for construction. Three local companies were included in the request for proposals.
"They're already looking for a plant manager and a construction manager," she said.
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Ova also reported on the Transportation Study, which is a comprehensive look at roads affected in the region by the ethanol project. The study is researching which roads are likely to be heavily used and the costs of upgrading and reconstruction. Ova said the study has been delayed but is still scheduled for completion this fall. A public hearing is part of the process. That has yet to be scheduled. The congressional delegation requested the study to push for more federal transportation funding.
