Northeast Biofuels prepares to reopen former brewery

FULTON - A former brewery will switch to the hard stuff late next year as Northeast Biofues (NEB) begins producing ethanol. The company is converting the former Miller brewery to produce grain alcohol used as an antipollution fuel additive. NEB plans to produce 100 million gallons of cornbased ethanol

NEB is aiming for a production date near the end of 2005.

"There's a tremendous need for ethanol in the Northeast," says Will, "and we have a geographic advantage."

The ethanol plant will bring approximately 100 jobs to the Riverview Business Park, as the former brewery is now known. Will and partner Thomas Denney's company purchased the 1.2-million-square-foot plant and 420-acre site for $3.5 million in late 2000. Miller built the plant in 1976, expanded it in 1982, and closed it in 1994. The property has rail, road, and river access. NEB will add new rail lines and subdivide the property as part of the project.

Ethanol is produced by fermenting corn and distilling the resulting "mash" to create a high-purity alcohol. The plant will denature its product with the addition of gasoline, making it unsuitable for drinking, Will explains. In addition to the fuel alcohol, the NEB plant could produce industrial or beverage alcohol in the future.

NEB will use the old Miller equipment to ferment corn and will add new industrial distillation equipment to the plant.

"We're re-using all Miller's fermenting and cooking vessels," Will adds.

NEB has hired CH Capital, Inc., an affiliate of Toronto-based Corpfinance International, to help it raise the $140 million in capital it needs to begin production. The capital-raising should take approximately 90 days, says Will.

NEB has contracted with RenerGlobe, Inc., part of the company that manages Canada's second-largest ethanol plant, located in Red Deer, Alberta. Under a fiveyear contract, RenerGlobe's compensation is based on the financial success of the Fulton plant.

Lurgi PSI, Inc., a unit of Germany's mg Technologies AG, is preparing an engineering, procurement, and construction study of the plant. O'Brien and Gere Engineers, Inc. is performing environmental restoration and permitting for the NEB plant.

Perdue Farms, Inc. will supply 100 percent of the plant's corn and has leased 20,000 square feet in the Riverview Business Park for its Venture Milling affiliate's operations. BOC Gases plans to invest more than $10 million to harvest carbon dioxide from the ethanol production process, says Will. The gas is used by the food and beverage industry and for the manufacture of dry ice.

"BOC will be erecting its own plant on the site," says Will.

NEB has entered into a project-labor agreement with two local labor unions, the International Brotherhood of Electrical Workers Local 43 (IBEW), and Plumbers and Steamfitters Local 73. In September, the IBEW pension fund and Electrical Contractors Pension Fund provided NEB with $3 million In interim financing. Will estimates the NEB construction and engineering project will employ 300.

"We think we've got the pieces in place, and now we have to execute the plan," says Will.