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Century Seeks Advice Before Moving Forward On $30 Million Biofuel Plant
November 4, 2010
The Town of Century may be taking a cautious step toward luring a $30 million biofuel plant after plans to located in Jay failed to materialize without the backing of the Town of Jay and Santa Rosa County.
Integrated Energy Partners asked the Town of Century to sign off on a memorandum to back the issuance of revenue bonds to finance the facility — essentially using the town’s name to obtain a credit rating with obligation to the town.
The council approved sending the IEP request to the town’s attorney, Matt Dannheisser, for review prior to taking any action on the bond agent request.
“Mr. Matt did not agree to get involved with it whatsoever as it was,” Century Mayor Freddie McCall said of Dannheisser’s recommendation. The attorney recommended that IEP front $5,000 to hire a financial advisor recommended by Dannheisser to “walk the city through” a decision.
McCall indicated that IEP’s Jeff Ates had indicated that he was willing to provide the funds for the financial advisor.
“We don’t have anything to lose; we are not losing a dime,” McCall said. “We will be using this man’s money.”
Integrated Energy Partners had asked the Santa Rosa County Commission to back the issuance of revenue bonds to finance the facility in the Jay Industrial Park. Since the county’s name would be used to obtain financing for the company, Commission Chairman Gordon Goodwin told a company official at a July meeting that he wanted more information before making a decision about a project using the county’s name. Weeks later, Santa Rosa County still had not received the additional IEP financial information.
The Integrated Energy Partners (IEP), Inc. facility would use agricultural products to create biodiesel fuel, kerosene, propane and electricity. The plant would provide about 30 jobs and eventually employee about 50 people in five years.
McCall said IEP would potentially join Century Lumber and Land, LLC, Railmark Holdings and Milton Timber in the old Alger-Sullivan Lumber Company complex. After two delays in financing, Century Lumber and Land, LLC is cut the a ceremonial ribbon and began making improvements at the old lumber facility last month.
According to documentation provided by Integrated Energy Partners to the Santa Rosa County Commission, the company would use seeds from the Camelina plant in the winter and other traditional year-round crops, including cotton seed, to produce their biofuels. In addition, municipal and other waste products would be used as fuel.
The company said it has secured purchase agreements with farmers involving about 10,000 acres in the Florida Panhandle and has an “in principle” agreement with a municipality for their waste.
The company is not dependent on local farmers; instead, “IEP can exist in any industrial park that has adequate and infrastructure,” according to the company. IEP emphasizes the word “offering” in their presentation to the commission about a potential relationship with local farmers by offering a market for their production under a U.S Department of Agriculture.
The company also said that there will not be any permitting problems in locating the plant because they will not need an air discharge, wastewater discharge or wastewater treatment system permit from the Florida Department of Environmental Protection.
At startup, the IEP planned to have a 5-12 megawatt electricity generation capacity. They would be able to produce, according to documents provided to the commission, a yearly output of 3 million gallons of biodiesel, 9 million gallons of kerosene, 353 thousand gallons of cellulosic alcohol, 437 thousand gallons of propane and 47.8 MWH of electricity.
IEP stated in documents presented to the Santa Rosa commission that federal law stipulates that a local utility must purchase electricity offered by an independent power producer. The company states that a local utility is “ready to purchase all of our power production”. IEP is also in negotiations to sell their liquid fuel to wholesalers.
Comments
16 Responses to “Century Seeks Advice Before Moving Forward On $30 Million Biofuel Plant”
reguarding: look deeply into what’s wrote the businesses that are here are just that on the outside…..whats on the inside????? drug trade..now THATS A LAUGH, or slap in the face, however you want to take it!
REGARDING:
“we will never get jobs here because its like I said before, we are a pit stop and nothing else. the people that decide (and everyone knows who you are) will go to any length to stop business forming in century,”
Yet somehow there ARE businesses in Century.
And unless they are fooling us, several new businesses are opening soon in Century. And there are businesses outside the town limits of Century.
To be honest, even farming is a business and there are farmers. Logging is a business and there are pulpwooders. Roadstone is a business, paving drives. (Illegal drug trade is a business but there is none of that going on so it doesn’t matter.)
Accounting. Electrician. Plumbing. Carpentry. Florist. Car detailing. Crafts. Sand and gravel. Storage. Hair and nails. Seamstress/tailoring and alterations. Masonry. Painting. Northescambia.com
There are jobs some do or could do. We may not like some of them, but we don’t have to do all of them. Everybody knows things I don’t know and haven’t even considered. Some hobbies could be turned into money-makers.
I don’t know of a law requiring everybody to sit and wait for someone else to offer them a job. One thing is certain, though, those who work for others tend to be paid less than their employers and at their mercy.
David thinking about opportunities
finally, it seems like the old routine…someone on the counsel will vote NO on anything…it was in the past and WHY CHANGE IT? we will never get jobs here because its like I said before, we are a pit stop and nothing else. the people that decide (and everyone knows who you are) will go to any length to stop business forming in century, yes it costs but if it employ’s people FROM CENTURY maybe they can get off all the welfare and pay their own bills, instead of the state or government paying it for them, good lord look at how many people are on welfare in century, doesn’t anyone see this???where does the state and government get their money, just guess…..OUR TAXES, its not hard to figure out..
REGARDING:
” that purchases all their power from Alabama. Why would they want to shoot their self in the foot with anything that deals with producing electricity when they have a monopoly on the electricity in all our areas”
I believe the idea is that EREC would buy power from them and then sell it to the members. As to why you would want more than one source of power, the thought that comes to mind is that you would have power if that one source went offline. If the right lines went down, the lights would go out. Multiple sources mean more lines would have to go down to put you in the dark.
Just a thought
“Integrated Energy Partners asked the Town of Century to sign off on a memorandum to back the issuance of revenue bonds to finance the facility — essentially using the town’s name to obtain a credit rating with obligation to the town” – Century would be on the hook if the company defaulted.
This is a Company wanting to use OPM – other people’s money…they sometimes get addicted to OPM – like our Government is…let the buyer beware…
The promise of “jobs” comes with a big hook in the bait.
Jay already has an electric co that purchases all their power from Alabama. Why would they want to shoot their self in the foot with anything that deals with producing electricity when they have a monopoly on the electricity in all our areas. Besides, if I remember right, Jay mayor has been a full time employee for Jay’s Electric co for years. So you put two and two together.
Century needs to get on the train before it leaves or someone else will gladly take the offer.
REGARDING:
“This is a great idea. My question is and has always been, How will this impact the lowering of the consumer utility bill. We have Free Water but it cost so much. We have Free Sunshine, But it cost so much.”
It shouldn’t lower the consumer’s utility bills at all unless it provided the town with energy cheaper than they can get elsewhere. That IS possible, not having to ship resources distances takes away the shipping costs. Shipping costs are usually a small part of the total, though.
The most likely way it would help with bills is by providing jobs to people so they could pay their bills. It might also lower some bills because local people might not have to drive so far to get to work.
Water is still pretty much free. Purifying it and pumping it to your home costs, but you can get all you want out of the river or most creeks.
Same thing with sunshine, no charge. If you want to do something special with it, you will pay for the materials, of course. Solar cells, solar reflectors, or even photochemical converters (called plants) cost something to manufacture and/or maintain.
David for good things
REGARDING:
” the head people of the town do not want anything to come into this area that would potentaly help the town by bringing much needed jobs in our area”
Does it really seem so unreasonable to you for them to prove viability?
It sounds good to me. If it is good, surely they won’t mind giving pertinent information.
David for good-faith efforts
what about the nursing home there are plenty of concerns about the many they have in pensacola, but they still have them? wake up people!!! use the old high school for offices for these companies its close enough there goes part of the costs, MAKE this area a prospering one again what would it cost, setting up computers thats easy enough, placing office equipment in there that also is easy enough and close enough, use the buildings that are available and prosper once again!!!! Logistics we have access to that ….whats wrong with this?
437,000 gallons of propane, 3 million gallons of biodiesel, 353,000 gallons of alcohol and not have to get a permit from fdep. You can’t even fart today without a permit. You have to file a permit to determine if you have one. Is there a concern about placing this facilities near the nursing home.
That’s right. If the project is sound then you have to wonder why they can’t get finacing on their own.
Sooo, if the bonds are issued and the business fails will Century be liable to pay back the money?
this is NOT UNCOMMON it has always been and will continue to be SHUT DOWN as anything that has tried to come into century,(with the exception of fast food establishments) the head people of the town do not want anything to come into this area that would potentaly help the town by bringing much needed jobs in our area and when will we get someone in office that the GREATER GOOD for this area will be allowed to bring big business here? If anyone has any suggestions for this problem respond and try to get something here for the people of century and surrounding areas…..I just don’t understand
>>Isn’t Dannheisser soon going to be judge and will have to give up his law practice? If that’s the case, Century needs to be looking for a new attorney ASAP.
Century (and Gulf Breeze’s) attorney is Matt Dannheisser. The new judge is Tom Dannheisser.
This is a great idea. My question is and has always been, How will this impact the lowing of the consumer utility bill. We have Free Water but it cost so much. We have Free Sunshine, But it cost so much. We have Natural Gas, but it cost so much. Where will this GREED take us? What’s benificial for the people of Century other than a Job, to only pay back their wages to a company producing a product they can’t afford. Left overs from a crop, left over waste as it’s known.
There is a light at the end of the tunnel, and yes it’s a Train. Get off the track.
Isn’t Dannheisser soon going to be judge and will have to give up his law practice? If that’s the case, Century needs to be looking for a new attorney ASAP.