Process Management

News last update:6 Aug 2012

Approval for Alltech's new biorefinery

Alltech received approval from the Kentucky Economic Development Finance Authority (KEDFA) for financial incentives for its rural community biorefinery project, the first such model in North America that integrates feed, food and fuel production. The incentive is the first of its kind to be awarded by the Commonwealth.

The incentive will total $8 million and will be based on a sales tax refund for building and equipment costs, a state income tax wage reduction for new employment and a credit against state income taxes. In addition, there is also a Department of Energy (DOE) grant application pending to further enable development in this exciting area is expected to be announced in February 2008. Thereafter the project will get under way.

Unique project
Alltech's rural community biorefinery will be the first in the United States to utilize cellulose, such as switch grass, corn cobs and corn stover, at levels up to 30% of its raw material for conversion to ethanol and other value-added products. The facility, estimated to cost approximately $40 million, will be located in Springfield, Kentucky and is expected to employ 93 people when operating at full capacity.

In addition to ethanol production, the biorefinery will have an impact on Kentucky's production agriculture by housing dairy and beef cattle to be branded under the Kentucky Proud label. Such actions could be a significant step toward addressing Kentucky's $250 million milk deficit and this concept has already drawn interest from the Netherlands, Ireland, South Africa and China. The facility will also have the capability to produce algae, a plant that needs little besides sunlight and carbon dioxide.

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