Rock Hill Herald, SC
08-25-07
Ethanol
If plans grow to fruition, thre could be factories making biofuel in
Chester County
By Charles D. Perry · The Herald
A second company eyeing a 206-acre site on Lancaster Highway between
Chester and Interstate 77 might build a plant that produces cellulosic ethanol
from waste wood, such as the debris left behind from logging. The facility would
employ 60 people.
One company is considering a 330-acre Beltline Road site for a plant that would
initially produce corn ethanol, but could produce what's called cellulosic ethanol,
a fuel made from non-food plants. The facility could employ as many as 63
people.
CHESTER -- Ethanol, the most talked-about alternative fuel in the country, might
flow in Chester County, possibly through the first two ethanol plants in the state.
But the two sites being eyed for wood- or corn-based ethanol manufacturing
facilities represent more than potential jobs for a county with double-digit
unemployment.
They're also part of a fledgling industry's dream for the Southeast.
"Everyone's looking at the Southeast," said Matt Hartwig, communications
director for the Renewable Fuels Association, the Washington D.C.-based
national trade association for the U.S. ethanol industry. "The Southeast holds a
great deal of potential, not only for the production of fuel ethanol but also for the
consumption."
Of the country's 127 ethanol plants, only one is in the Southeast -- in Tennessee.
However, 81 more are under construction nationally, including sites in Georgia
and Mississippi.
Ethanol projects are being discussed in South Carolina, including the two in
Chester County. Depending on how quickly a plant breaks ground, the county
could claim the first ethanol plant in the state.
Ethanol boom
The U.S. ethanol industry exploded in recent years. In 2000, the country
produced 1,630 million gallons of ethanol, according to the Renewable Fuels
Association. Last year, that number was 4,855 million gallons.
The national interest isn't just in corn ethanol, though, but also in cellulosic
ethanol, which is made from plants not used for food.
The U.S. Department of Energy said in February that it would invest up to $385
million in six bio-refineries over four years. The DOE expected the facilities to
eventually produce more than 130 million gallons of cellulosic ethanol per year.
Ethanol's future
One of the ethanol companies eyeing Chester County wants to build a plant that
produces cellulosic ethanol from waste wood, such as the debris left behind from
logging. The other company is planning what would initially be a corn-based
operation.
County officials have not identified either company.
Experts see the Southeast as a viable producer of either corn or cellulosic
ethanol. Corn-based plants, however, are closer to reality, even though the
region doesn't produce much corn.
The ethanol industry is struggling with whether to ship corn or ethanol a long
distance, said Chad Hart, an agricultural economist at Iowa State
University's Center for Agricultural and Rural Development. "If you're trying
to tap into the Atlanta ethanol market, it might make sense to have a plant in
Georgia, in South Carolina, that can ship a couple of hundred miles away to
Atlanta rather than a thousand miles away from Iowa."
Some wonder how viable a corn ethanol plant will be in South Carolina, which
produces half the corn needed to support the proposed Chester County plant.
"If they were producing ethanol from, say, wood byproduct ... it would make
sense to me. But not so much corn here," said Marsha Bollinger, a Winthrop
University geology professor. "I guess I would be questioning the future of the
plant -- not whether you can do it now -- but will it be viable 10 years from now."
Clint Thompson, whose Georgia consulting firm is working with the company that
wants to build the corn ethanol plant, said an ethanol plant can be successful
without a large regional corn crop.
"The reality is destination plants work," he said. "We have the market. We have
what the Midwest guys don't. We have people that drive cars. So, a guy that's
sitting in Iowa, South Dakota, Minnesota, he's going to pay 20 cents a gallon to
move his ethanol to where the people are... We'll pay less than a nickel."
Corn-based ethanol currently dominates the U.S. ethanol market. But last month,
a Colorado-based ethanol company announced it had received a permit to build
the country's first commercial-scale cellulosic ethanol plant in Georgia.
Still, some doubt that fuel technology is commercially viable.
"There are trial plants for cellulosic ethanol in the U.S., but it is not profitable,"
said Simla Tokgoz, an international grain and ethanol analyst with the Food and
Agricultural Policy Research Institute at Iowa State. "It cannot compete on a
profitable basis with corn ethanol right now. The technology is still improving."
Chester County Economic Development Director Karlisa Parker said the
business planning a wood-based ethanol plant has vast experience with
cellulosic ethanol technology. The business planning the corn-ethanol plant will
ship corn from the Midwest and could add cellulosic ethanol if technology
changes.
'Our first generation bio-fuel'
Ethanol proponents say the fuel burns cleaner and costs less than regular
gasoline, and using ethanol supports local economies because area
manufacturers easily can produce the materials to make it.
Most importantly, they say, ethanol reduces Americans' dependence on foreign
oil.
Ethanol critics claim the corn used to produce the fuel requires fertilizer and
pesticides that pollute rivers and streams. They point to coal-powered ethanol
plants in the Midwest that hurt air quality and the millions of gallons of water
drained from water supplies to make ethanol.
Critics also say the plants produce an unpleasant smell.
Because the ethanol industry is still in its infancy, the validity of some concerns is
still being debated.
"Ethanol sort of represents what I call our first generation bio-fuel," Hart said. "Is
ethanol the end-all of bio-fuel? Arguably, it's not. But when we look at what it
costs to create fuels from plants today, right now ethanol is the most cost
effective way to do that."
What to expect in Chester
So what impact will these plants have on Chester County?
The plants could bring 123 jobs and millions in local investment. Environmentally,
Hart said ethanol plants put additional strain on the water supply and roads.
But county leaders say those issues won't be a problem.
An ethanol plant would actually help the community's water quality by allowing
the water plant to run more frequently, said Mike Medlin, executive director of the
Chester Metropolitan District, which provides water for much of Chester County.
Over the last 10 years, the county has lost industry and water customers. The
county's water plant can handle 7.2 million gallons per day, but now only 2.5
million gallons are used daily. The corn-based ethanol plant could use 1.2 million
gallons per day.
Increased truck traffic has been a concern of residents living near other ethanol
plants, including the Albert City, Iowa, facility some Chester County leaders and
landowners recently visited.
But Chester officials say the traffic shouldn't cause a problem here because other
companies recently have closed or scaled back operations.
The Chester County corn plant would include features that are more
environmentally friendly than some other ethanol plants, Hart said.
Instead of coal, the plant would be powered by natural gas. Also, a liquid carbon
dioxide or "dry ice" plant would capture carbon dioxide emissions, helping air
quality.
In Albert City, residents initially worried about the smell of the plant and the truck
traffic, city clerk Angie Nielson said. But she hasn't heard any complaints since
the plant started in December.
"They've been really good working with us," she said.
Alvira Braesch, an Albert City resident who lives less than half a mile from the
plant, said she's never had problems with the facility, which she can see from her
house. While she's never noticed an odor from the plant, others say it often
smells like fresh baked bread.
"It doesn't bother me a speck," said Braesch, who moved to her home in 1986.
"Outside of the traffic, I don't know it's any different."
8226; You're probably most familiar with it as ethyl alcohol, drinking alcohol or
grain alcohol. Yes, that's ethanol.
8226; Ethanol also is a biofuel alternative to gasoline that can be made from
corn, wood chips and other renewable products. Starches break down into
sugars that can be fermented and distilled into ethanol. In the U.S., its primary
feedstock is corn.
8226; Flex-fuel vehicles are cars and trucks that can run on either gasoline or
E85 ethanol. What's E85? That's a blend of 85 percent ethanol and 15 percent
gasoline. You can buy it locally. Henry Ford's Model T ran on a version of
ethanol.
8226; Ethanol burns cleaner than regular gas and using ethanol-based fuels
supports local economies because area manufacturers can easily produce corn
and other products used for the production of ethanol. One company eyeing
Chester County for an ethanol plant has said it will buy all the local corn it can.
8226; If Chester County lands one or both ethanol plants being considered for
the area, the facilities would be the first of their kind in the state. Ethanol
manufacturing plants are being considered for other places in South Carolina, but
no ground has been broken anywhere. Industry analysts say the Southeast is
being targeted for ethanol plants, in part, because of the region's market for the
alternative fuel. Of the country's 127 ethanol production facilities, only one is in
the Southeast (Tennessee). However, 81 more are under construction, including
sites in Georgia and Mississippi.