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Ethanol Plant Set to Break Ground

Posted on: Thursday, 25 August 2005, 18:00 CDT

Aug. 25--The controversy over a proposed ethanol plant near Blissfield, Mich., appears to be over as plant officials will host a groundbreaking ceremony today.

Officials at Great Lakes Ethanol LLC of Adrian said construction on the $80 million plant on 136 acres near Silberhorn and Cemetery roads in Riga Township near U.S. 223 will begin in 12 days.

The ceremony comes on the heels of proposed legislation introduced yesterday by Michigan House Democrats calling for all gasoline sold in Michigan to contain at least 10 percent ethanol in an effort to combat escalating fuel costs.

"We didn't know anything about that; it would be a great boost to the market," Great Lakes Chairman Jeff Ehlert said.

Mr. Ehlert and his partners have battled over a year with a group of Riga Township residents who are opposed to the plant for environmental and other reasons. In February, Great Lakes won a local referendum that could have killed the project.

Some residents remain opposed to the plant.

"We think it's an improper placement for a chemi-cal plant," said Kendra Goetz.

Ms. Goetz said the plant is a potential fire hazard whose emissions will pollute the air. She also is concerned about the impact of emissions from idling trucks waiting to load and unload their cargoes.

Great Lakes has received most of the state and federal permits it needs to operate its plant. Company officials are waiting for the OK from the Department of Environmental Quality for permission to discharge its treated wastewater into the River Raisin.

"They don't have to have it before they break ground; they can construct the whole plant," said Jon Russell, DEQ supervisor in the Jackson district office. "[But] I expect it will be issued in the near future."

Less certain is the source of the 500,000 to 600,000 gallons of water the plant will require to operate every day.

Mr. Ehlert said he would like to buy water from the village of Blissfield, if the price and conditions are right.

Village Supervisor James Wonacott, who has not been a supporter of the plant, said he would like to come to an agreement with Great Lakes on water use so the village can benefit.

"While it is not located in the village limits, it is possible we will see some of the negative effects of the plant," Mr. Wonacott said. "Increased truck and train traffic, and air and odor pollution - we don't know how much it will affect us. [Also] we suspect we won't ever see any tax benefits from the plan. We believe there should be some benefit for Blissfield, and the only way that is going to happen is through our water system."

Mr. Wonacott said the village will offer Great Lakes a fair price for its water at a meeting he hopes to organize in the near future that will include Riga officials.

Mr. Ehlert said the issue is more complicated than Mr. Wonacott portrays. Blissfield officials, he said, expect Great Lakes to pay for the system that will carry water from Blissfield to the plant, an issue Mr. Ehlert said needs to be resolved.

"We want to be a good neighbor. It would save us expense to go through Blissfield, plus it would give us an opportunity to give something back to the village. But it has to be economically feasible to do that," Mr. Ehlert said.

Mr. Ehlert said the alternative would be for Great Lakes to take water directly from the river itself. Mr. Wonacott said state law prohibits private companies from doing so.

Mr. Russell said the state's water and land management department would eventually rule on that issue if necessary.

Mr. Ehlert said Great Lakes has raised most of the money it needs to begin operation. Although the company struggled to find investors while it fought for its permits and local approval, Great Lakes received a boost in June when it merged with an Iowa ethanol firm, Midwest Grain Processors LLC.

Great Lakes officials have said the plant will create about 60 jobs and provide a new market for area farmers' corn.

Ms. Goetz disputes that contention. She said Great Lakes' merger with Midwest Grain means fewer local jobs. She also said she believes Great Lakes would buy its corn from wherever it gets the best price, which might exclude local farmers.

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Source: The Blade

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