Start up of Osage Plant a Concern for Hopewell, Va, Officials

BioRefineries/Renewable Fuel Production, Business News/Analysis, Field/Orchard/Plantation Crops/Residues, Virginia

May 20, 2011

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by Holly Jessen (Ethanol Producer Magazine) Nearly a year after Virginia’s first ethanol plant was scheduled to be producing ethanol, the grounds of Appomattox Bio Energy stand quiet, with very little activity. In fact, the rumor going around town is that the employees have been laid off, said Thomas Lacheney, Hopewell’s city attorney. “All we really know is rumors,” he told EPM.
…According to its contract with the city, however, the company has until Sept. 30 to post a $5 million letter of credit—whether the plant is producing ethanol or not. The contract allows the city to withdraw $1 million for missed tax revenue immediately. In all, the city expected to receive at least $2 million in taxes yearly from the ethanol plant. If the company doesn’t post the letter of credit Hopewell will be left with no recourse but to sue, he said.
…Calls to multiple numbers at the plant have been repeatedly busy and multiple emails from EPM have gone unanswered. “Everybody seems to have the same problem in getting a hold of them,” Lacheney said. READ MORE

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