Squeezing beans was on the mind of the Cayuga County Industrial Development Authority as it approved the application process for a would-be producer of local biodiesel fuel.
The Auburn BioDiesel Corporation (ABDC) presented its plan to produce biodiesel fuel from soybeans to the IDA at its regular meeting Wednesday afternoon and was unanimously approved to proceed with its application.
“The project is already underway and proceeding on many levels,” David Colgrove, ABDC president, explained. “The county IDA has specific funding sources available that we are applying for, some 20 categories.”
The three-phase reconstruction project will include 570 acres of the former Clinton Corn/Archer Daniels Midland corn syrup processing facility in Montezuma.
Phase I, a $70 million project, will establish a 30 million bushel soybean crushing operation to produce 30 million gallons of biodiesel fuel, George Farenthold, vice president of ABDC said.
"This is really the start of the process of engaging the IDA," Steve Lynch, IDA executive director,said.
Funding for the project will be raised from outside private sources, Colgrove said. This money will be complemented and raised as public sources come in.
"There is no way to know when the sources of public funding will come through," Colegrove said. "There are 100 categories of potential funding sources for biodiesel. Which applicants qualify and receive the funding is subject to restrictions. In general, public money must follow private money. The project has to be viable and fully funded."
"We have a variety of commitments from several sources," he said. One particular investor was present at the IDA meeting to encourage the project.
"During the application process, the company's attorneys and IDA attorneys work to determine the structure that works best for the company and the best deal," Lynch said. "If benefits affect the taxing jurisdiction, then public hearings are held and environmental reviews are made."
He said that the IDA is a conduit that benefits pass through from the state. The company can be eligible to receive tax free bonds, which are cheaper than if it went out and found private bonding.
"Once credit is extended to the company by a bank, bonds can be issued through the IDA, which is a public benefit corporation," Lynch said.
Five members of the ABDC board of directors were at the meeting: president David Colgrove; interim CFO Jon Verbeck, CPA and financial consultant; vice-president and controller Cynthia Day, of Skaneateles, also secretary to the board; vice president of administration Pamela Kirkwood, of Auburn, CCC trustee and local management consultant; and vice president of government and public relations George Farenholt, village of Aurora trustee.
Colegrove has worked on the project for more than three years. During that time, board members have contacted local farmers and soybean producers, encouraging their participation, promoting interest in soy bean production, as soy meal producers or as biodiesel consumers.
ABDC will buy local soybeans and crush them locally to get soy oil for feedstock (raw material) to make biodiesel fuel.
The mechanical soybean crushing operation creates a high quality, high protein soymeal which can then be used for livestock feeds.
Besides buying Cayuga County soybeans and making both soy meal and biodiesel fuel, the corporation's goal is to retrofit the facility to be ready to produce by the end of Phase I. While no timeline has been established yet, Colegrove said it would be at least a year before any groundbreaking took place.
Staff writer Kathleen Barran can be reached at 253-5311 ext. 238 or kathleen.barran@lee.net
“The project is already underway and proceeding on many levels,” David Colgrove, ABDC president, explained. “The county IDA has specific funding sources available that we are applying for, some 20 categories.”
The three-phase reconstruction project will include 570 acres of the former Clinton Corn/Archer Daniels Midland corn syrup processing facility in Montezuma.
Phase I, a $70 million project, will establish a 30 million bushel soybean crushing operation to produce 30 million gallons of biodiesel fuel, George Farenthold, vice president of ABDC said.
"This is really the start of the process of engaging the IDA," Steve Lynch, IDA executive director,said.
Funding for the project will be raised from outside private sources, Colgrove said. This money will be complemented and raised as public sources come in.
"There is no way to know when the sources of public funding will come through," Colegrove said. "There are 100 categories of potential funding sources for biodiesel. Which applicants qualify and receive the funding is subject to restrictions. In general, public money must follow private money. The project has to be viable and fully funded."
"We have a variety of commitments from several sources," he said. One particular investor was present at the IDA meeting to encourage the project.
"During the application process, the company's attorneys and IDA attorneys work to determine the structure that works best for the company and the best deal," Lynch said. "If benefits affect the taxing jurisdiction, then public hearings are held and environmental reviews are made."
He said that the IDA is a conduit that benefits pass through from the state. The company can be eligible to receive tax free bonds, which are cheaper than if it went out and found private bonding.
"Once credit is extended to the company by a bank, bonds can be issued through the IDA, which is a public benefit corporation," Lynch said.
Five members of the ABDC board of directors were at the meeting: president David Colgrove; interim CFO Jon Verbeck, CPA and financial consultant; vice-president and controller Cynthia Day, of Skaneateles, also secretary to the board; vice president of administration Pamela Kirkwood, of Auburn, CCC trustee and local management consultant; and vice president of government and public relations George Farenholt, village of Aurora trustee.
Colegrove has worked on the project for more than three years. During that time, board members have contacted local farmers and soybean producers, encouraging their participation, promoting interest in soy bean production, as soy meal producers or as biodiesel consumers.
ABDC will buy local soybeans and crush them locally to get soy oil for feedstock (raw material) to make biodiesel fuel.
The mechanical soybean crushing operation creates a high quality, high protein soymeal which can then be used for livestock feeds.
Besides buying Cayuga County soybeans and making both soy meal and biodiesel fuel, the corporation's goal is to retrofit the facility to be ready to produce by the end of Phase I. While no timeline has been established yet, Colegrove said it would be at least a year before any groundbreaking took place.
Staff writer Kathleen Barran can be reached at 253-5311 ext. 238 or kathleen.barran@lee.net
