Published: October 07, 2005 09:00 am      

Future of ethanol is discussed at roundtable

MOUNT CARROLL, Ill. — Representatives from city and county governments, farm owners, agriculture producers and economic development professionals attended an ethanol roundtable on Wednesday at the Carroll County (Ill.) Farm Bureau to discuss the benefits of more ethanol plants in Illinois.

The discussion was hosted by representatives of Black Hawk Hills Resource Conservation and Development, the Illinois Environmental Protection Agency, the Illinois and U.S. Departments of Agriculture and the Illinois Department of Commerce and Economic Development.

Steve Haring, economic development director of the Black Hawk Hills Economic Development District, said his office receives weekly calls about the progress of ethanol plant development in northwest Illinois. He added that ethanol production is something that northwest Illinois can take advantage of.

“We are seeing some success, but we have a long way to go,” Haring said.

The purpose of the roundtable was to examine the economic potential for ethanol production in Illinois.

“Ethanol production is gaining more interest with rising gas prices,” said Nancy Mulcahey, northwest region manager of the state’s Opportunity Returns program.

Illinois Department of Agriculture Director Chuck Hartke said someday Illinois residents could be looking back at paying $3 a gallon for gasoline and thinking it was cheap.

“We’re going to have to come to grips with the fact that there’s a finite amount of oil this world has,” Hartke said. He added that Gov. Rod Blagojevich supports the increased use of E-85, the alternative fuel blend of up to 85 percent ethanol and just 15 percent gasoline, and has recently allocated $15 million in state funding for the construction of more E-85 plants.

Hartke said the state has approximately 100 gas stations that sell E-85, including the F/S Fast Stop at 615 E. Lincolnway in Morrison, Ill.

“We could use a lot more,” said Hartke, “It’s going to take a lot of investment and a lot of time.”

Philip Shane, market development director for the Illinois Corn Growers Association said, “It is as much about jobs and development as it is about ethanol production.” Shane said the energy bill passed in July calls for increasing the Renewable Fuels Standard and ethanol production from its current projected rate of four billion gallons per year in 2006 to nearly eight billion gallons per year in 2012.

“We’re talking about doubling this industry in six years,” Shane said. He said Illinois has the resources to lead the country for ethanol production. Currently, Iowa is tops in ethanol production.

“Illinois has the corn. Illinois is competitive in utility rates. Illinois has a superior infrastructure with railways, barges and highways,” Shane said. “We have very, very strong support in this state. I hope we can keep that.”

Mary Holmes, manager of the Illinois Value-Added Rural Development Center, said, “There is a lot of activity in ethanol going on in Illinois.” Holmes offered the services of a ethanol plant pre-feasibility indicator on her firm’s Web site, www.value-added.org. Parties interested in constructing and opening an ethanol plant can use the indicator to assess the economic feasibility of startup costs.

Dave Loos, from the Illinois Department of Commerce and Economic Development, discussed the Renewable Fuels Development Program and grants, tax provisions and incentives for developing ethanol production plants in Illinois. Loos said without ethanol, gas prices would increase by 14.6 percent.

He added more than 80 new ethanol plants had been built since the last gasoline refinery was constructed in the United States. Loos said there are up to a dozen ethanol plant projects in the works in Illinois and car companies like General Motors, Ford and Daimler-Chrysler are increasing production of ethanol burning vehicle.

“Flexible fuel vehicles are good for the economy, as well as clean air,” Loos said.

Janet Mathis, senior account manager for the Northwest Region Opportunity Returns program, discussed other DCEO project assistance. For information on DCEO programs including tax credits, training grants, loan programs and enterprise zone benefits, visit the Illinois DCEO Web site at www.commerce.state.il.us/dceo.

Dwayne Smith, from the USDA, talked about rural development grants. For more information on business and cooperative programs, visit www.rurdev.usda. gov/rbs/.

Donald Sutton, manager of the permit section of the Illinois EPA, discussed the process of acquiring permits for ethanol production plants. He recommended developers hire an environmental consultant to make sure pollution limit requirements are being met.