Ethanol plant in Hopewell should be operational by July

The first ethanol plant in Virginia is just weeks from completion.

Appomattox Bio Energy in Hopewell, which will convert barley into ethanol, should be operational by July.

"We'll be putting out some product by the end of July, but we probably won't be putting out any real commercial capacity until sometime in August," said John Warren, director of government relations and project development for Osage Bio Energy.

Osage, based in Henrico County, is developing the country's first major barley-based ethanol and protein feed production facility in Hopewell. Ground was broken on the project in October 2008.

The ethanol will be distributed in local markets and used as a blend in gasoline fuel.

Farmers in the Richmond region will begin harvesting their barley crop this month. As the plant begins ethanol production, it will initially operate at a reduced capacity, Warren said. At full production capacity, the plant will use 30 million bushels of barley a year to produce about 65 million gallons of ethanol.

The plant, which will generate nearly $2 million in tax revenue for Hopewell, was delayed nearly two months by snow that plagued much of the Richmond region this winter.

"We're working as fast and as hard as we can," Warren said.

Crews are working extended shifts six days a week to complete the plant that sits on 55 acres on Sixth Avenue adjacent to downtown Hopewell. Workers are installing pipes and instrumentation and then will commission all of the new equipment, such as fermenter tanks, heat exchangers and distillation columns.

"The equipment manufacturers will come in and look over your shoulder as you start it up, ramp it up to capacity and make sure everything works," Warren said.

Nearly all of the 55 employees have been hired, but a few positions remain available. Of those hired, nearly 86 percent live in the Tri-Cities region, he said.

City Councilwoman Christina J. Luman-Bailey, who supported the project, said having the plant is already making a difference for Hopewell residents -- a 5-cent difference in the real estate tax rate. That creates savings of $150 to $200 per year for residents, she said.

"Compared to other communities that have their factories closing the doors and leaving or projects that were supposed to happen but fell through because of the economic situation, I would say that we're in very good shape," Luman-Bailey said. "They have held true to their word about what they were going to do."

source: timesdipatch