Published: May 02, 2008 06:07 pm      

NIAGARA FALLS: Low-cost power OK’d for ethanol plant

Toronto-based company still waiting on brownfields approval

A major step in helping bring a new ethanol production facility to Niagara Falls has been taken, but one final hurdle remains.

New York Power Authority Board of Trustees approved Tuesday the allocation of 9,000 kilowatts of hydropower to Northern Ethanol, LLC, a Toronto-based company that plans to purchase a 47th Street parcel from Praxair for construction of a new ethanol facility, as well as offices, a laboratory and a warehouse.

The low-cost hydropower coming from the Niagara Power Project will help bolster plans for the facility, which expects to bring in a capital investment of $245 million and 105 new jobs.

“We’re excited about helping to bring this ethanol plant to Niagara County and contributing to expanding the state’s renewable fuel production,” said Roger B. Kelley, NYPA president and chief executive officer.

However, the project isn’t a reality yet.

Northern Ethanol still is awaiting ruling on its application for acceptance into the state’s Brownfield Cleanup Program to obtain tax credits in return for environmental cleanup and redevelopment of the 70-acre parcel. The purchase of the former Praxair property is contingent on receiving brownfield status, Northern Ethanol officials have said.

Niagara Falls Mayor Paul Dyster said his administration and local state representatives are lobbying hard to get the application approved. He added a decision likely needs to be made within the next two weeks for Northern Ethanol to move forward on the land purchase option.

“The allocation of power is good news, but we’re also very anxious to find out what’s happening with the brownfield application,” the mayor said.

A moratorium on approving brownfield applications was placed upon the approval of the state budget on April 9, however local officials are unsure what affect that will have on Northern Ethanol, which had its application in prior to that decision.

If opened, the Niagara Falls facility would produce 108 million gallons of ethanol per year for use by vehicles in combination with gasoline.

Made from corn or other grains, ethanol (ethyl alcohol) has been used since the early part of the 20th century as a motor fuel, and more recently as a clean-burning fuel oxygenate. Its origins as a transportation fuel date back to 1908, before the widespread use of petroleum. Ethanol cuts the emissions of unburned hydrocarbons and carbon monoxide.

The new facility would also annually produce 400,000 tons of dry distiller grain, a livestock feed, which is a by-product of ethanol production.

In approving the low-cost power allocation, NYPA officials pointed out the plant’s positive impact on the state’s energy costs by lessening dependence on foreign oil while curbing greenhouse gas emissions.