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Media
Representatives
Please Contact:
Project Coordinator: Janice Yates
(405)
205-9580
Email: info@OKSustainableEnergy.com
P.O. Box 24000
Oklahoma City, OK 73124
Latest News
From OKCbusiness.com
OKlahoma companies plan ethanol site in Blackwell
Mallery Nagle, 5/14/2007
OKC – Energy production and agriculture are the state’s
No. 1 and 2 industries, respectively. A merger of the two later this year
will result in an economic impact of millions, business leaders say.
Oklahoma Ethanol LLC, a joint venture between Oklahoma Sustainable Energy
LLC and Chaparral Energy, announced in April that Blackwell would be the
site for a more than $100 million, 240-acre facility for producing ethanol.
This is the first major production facility of its type in the state.
“As far as we know, it’s the only plant in the country to
join agriculture and the gas and oil industry as partners,” said
Terry Detrick, chairman of OSE and manager of Oklahoma Ethanol. “It’s
a homerun for Oklahoma.”
Detrick is also vice president of the Oklahoma Farmers Union and American
Framers and Ranchers, representing the agriculture part of the partnership.
OSE had organized a group of 300 private Oklahoma investors to raise part
of the money to build the plant.
Following a 2003 feasibility study for the plant, Enid was deemed the
best location for the facility, Detrick said. The city offered a 40-acre
tract of land with proximity to rail transportation and a storage facility.
“We thought it was the perfect site,” Detrick said. “But
when we got down to basics, there were problems with the water supply
delivery and the waste water disposal infrastructures.”
He noted these issues could not be remedied without “major investment.”
Enid City Manager Eric Benson declined comment on the change of plans,
stating he did not have all of the details.
“Maybe they offered better economic incentives,” he said.
Seed money was reportedly returned to Benson’s office following
the announcement.
“Blackwell had a very aggressive, positive-minded proposal that
brought infrastructure to the table that showed they were prepared for
growth,” Detrick said.
He added that the Blackwell site offered a much larger tract of land for
the plant, and that railroad and highway access were more conducive to
their business than what was available in Enid.
“Enid is a good site to consider in the future,” Detrick said.
“They’ll be prepared next time.”
Detrick said investors made their decision based on a prospectus that
allowed room for unknowns.
“They knew going in that [Enid] was a proposed place,” he
said. “Several investors have called to say they are pleased with
the change, and some have commended us on finding a better opportunity.”
Shane Frye, executive director of the Blackwell Chamber of Commerce and
Industrial Authority agreed with Detrick, stating that Blackwell’s
geographical location offered a number of advantages. Not only can transportation
savings be realized there, Blackwell offers proximity to corn and grain
sorghum, or milo, crops, the water infrastructure is in place, and the
site offers eligibility for federally-designated tax credits and is in
a state enterprise zone. In addition, there is easy access to grain storage.
Frye said the plant will initially offer 35 jobs, and
will create 150-200 service-related or ancillary jobs. A USDA study said
that figure could go as high as 1,200 jobs in the region.
“The state commerce department said that rural communities with
a plant of this size and nature will create a one time $100 million boost
to the local economy during the construction phase,” Frye said.
Between 500 and 750 jobs are expected to be sustained during the 12- to
16-month construction period. Ground breaking is expected during the fourth
quarter of this year.
Frye said other statistics show that the combined area household income
is expected to increase by $8.3 million annually.
As an added boost to the state’s and the region’s economies,
Frye said the plant will purchase and convert about 20 million bushels
of grain into about 50 million gallons of fuel-grade ethanol and 176 tons
of distiller’s grain annually.
Distiller’s grain, he explained, is the protein-rich byproduct which
is left following ethanol processing. Livestock farmers use this highly-nutritious
grain as feed.
Ethanol already can be used in conventional automobiles. Detrick said
E-90, a blend of 90 percent gasoline and 10 percent ethanol that has been
in use since 2005, has helped reduce tailpipe emissions which are the
equivalent of taking 1.18 million cars off of the road. Bio-degradable
ethanol, he added, also reduces the amount of MTBE, a know carcinogen,
which engines emit into the air. E-85 can be used in flexible fuel vehicles,
which are on the market.
“This is a win-win-win situation,” said Mark Fischer, president
of Chaparral Energy Company and manager of Oklahoma Ethanol, another investor
in the plant. “The primary reason we are involved in this is CO2
recovery,” Fischer said. Fischer explained that CO2, another byproduct
of ethanol production, is used to force oil out of mature or marginal
fields. He noted the company’s Burbank Field is about 40 miles from
Blackwell.
“Ethanol is not our competition,” Fischer continued. “This
is a situation that can greatly reduce our dependence on foreign oil.”
From tulsabusiness.com
Ethanol Plant a Boost for Blackwell
Ray Tuttle, May 14, 2007
Tulsa – Oklahoma’s first major ethanol plant is the also the first in the nation built by a partnership between agriculture and energy companies.
Construction on the $100 million grain sorghum-processing plant begins with a fall groundbreaking on a 240-acre site between Blackwell’s downtown and city industrial park near Interstate 35.
The project is a joint venture of Oklahoma Sustainable Energy LLC and Oklahoma City-based Chaparral Energy, said Terry Detrick, Oklahoma Farmers Union vice president and president of Oklahoma Farmers Union Sustainable Energy. He is also Oklahoma Sustainable Energy chairman and a manager of Oklahoma Ethanol.
“Partnering with a domestic oil and gas company for a renewable energy project is a home run,” Detrick said.
Oklahoma Sustainable Energy raised more than $8.1 million in private capital from about 300 Oklahomans toward construction of the plant, Detrick said.
The plant will convert grain sorghum into ethanol, he said.
“When people think of ethanol, they immediately think of corn,” Detrick said. “But, you can make it from grain sorghum — which takes less water, less chemical and less fertilizer — than corn.”
Oklahoma has an untapped potential to grow grain sorghum, he said.
Blackwell, in north-central Oklahoma, sits in the heart of the highest concentration of grain sorghum production in the U.S.
“That is another tremendous advantage for us,” Detrick said. “You have to be conscious of what type feedstock is available for the territory.”
Grain sorghum is known by two other common names — milo and maize. Year after year, the highest production rates for the grain is in the region that straddles the Oklahoma-Kansas border.
Another sorghum, sweet sorghum, requires high amounts of moisture and is grown primarily in Tennessee and Kentucky.
“Our decision to locate the plant in Blackwell is strictly a business decision based on what’s best for our company and investors,” said Mark Fischer, a manager of Oklahoma Ethanol and Chaparral president.
Construction of the plant is expected to take 18 to 24 months. The production facility will replace 1.2 million barrels of imported foreign oil annually and create 35 new direct jobs. More than 250 indirect jobs are also expected in the region, said Shane Frye, executive director of the Blackwell Area Chamber of commerce and Industry Authority.
The ongoing economic development story has had a number of false starts. Two years ago OE announced plans to construct a plant in Enid, which remains a viable site for a future plant.
But in February, company partnership officials postponed the Enid plans for a plant to be built on 40 acres — citing increasing construction costs and the high price of corn.
Enid showed its commitment to help Oklahoma Ethanol build a plant with the establishment of a Tax Increment Finance district in March 2006. But other communities — including Blackwell — continued to court Oklahoma Ethanol.
From EnidNews.com
Loss of the ethanol facility
April 30, 2007
Enid – In August 2005, Oklahoma Ethanol announced plans to build the state’s first large-scale ethanol plant in northeast Enid.
Twenty months later, Oklahoma Ethanol announced a fall groundbreaking for the plant — in Blackwell, instead.
The ethanol plant was Enid’s, and Enid lost it.
With it, Enid lost the plant’s 33 permanent jobs, 100-plus jobs and spin-off business from construction of a $100 million processing operation, plus numerous economic benefits that would come with handling the supplies and byproducts of such an operation. Enid lost a lot.
The obvious question is why, and what lessons can Enid and Garfield County gain from this economic setback. Those questions deserve a studied answer, not snappy quips or anonymous criticism.
The issue is more than the Oklahoma Ethanol processing plant. It’s about how Enid does economic development, whether another announced ethanol plant ever will be built in Enid, and whether Enid has “the right stuff” to attract other manufacturing or industrial employers.
Specifically, what did Blackwell offer Oklahoma Ethanol that quietly tipped the scales? How did Blackwell’s tax-increment-financing plan differ from Enid’s? How did financial incentives differ? How will Blackwell address the concerns about odor, truck and rail traffic? Because water, sewage treatment and energy are major demands for an ethanol plant, how do rates differ between the two cities?
Those in Enid charged with attracting new industry cannot obsess over the lost opportunity, but they can and must learn lessons from this experience to be effective in their roles in the near future. For example:
• The city’s TIF and location approval process took an exceptionally long time, with new issues and new city ordinances developing throughout. Meanwhile, the construction price shot up from $71 million to about $100 million. While some Enid city commissioners publicly were criticizing the plant’s traffic and location, Blackwell officials were taking notes and quietly preparing a competing offer. What can be done to be fair but speed up the approval process?
• Water and sewage treatment likely are to be demands of other potential industries, including the proposed Orion Ethanol plant. Capacity and rates need to be addressed proactively. Energy and ag processing activities likely are prospects for Enid industrial growth, so we’ll likely see those concerns again.
• How aggressively and how effectively does Enid seek out potential new primary employers?
• City government must be a positive player in economic development. That’s where the money is, and formal city approval will be needed for almost any major venture.
It would be easy to dismiss Oklahoma Ethanol’s shift to Blackwell with a few disparaging remarks about the ethanol industry, Enid not needing two ethanol plants, or such. But that would ignore the potential knowledge to be gained from the experience.
The Enid mayor needs to appoint a task force — independent people with varied backgrounds facing a short time line — to ask the questions above and report on lessons learned. Those lessons will be critical for Enid to compete and grow in a region full of communities also seeking quality jobs and growth.
Gov. Henry Proposes Bioenergy Center to Make Oklahoma Global Leader in Biofuels Research
January 30, 2007
Oklahoma City – As part of growing efforts nationwide to reduce the United States’ crippling dependence on foreign oil, Gov. Brad Henry announced today an ambitious proposal to create a world-class Oklahoma Bioenergy Center to focus on research, development and education. If approved by the Legislature, the OBC would pool top researchers from throughout Oklahoma as well as across the nation.
"With 60 percent of the nation’s oil supply coming from foreign countries, many of which are openly hostile to the U.S., the need for renewable energy is clearly a matter of national security," the Governor said. " Not only would the Oklahoma Bioenergy Center play a vital role in reducing America’s dependence on foreign oil, but it would be a great boon for Oklahoma in a number of ways. This institute would help diversify our state’s economy, protect our environment, create high-paying jobs and contribute to a revitalization of rural Oklahoma."
Gov. Henry said Oklahoma is ideally suited to have a leading role in biofuels and bioenergy research. The state produces many of the most promising energy crops, such as switchgrass and other native grasses, and Oklahoma boasts a long and venerable tradition in energy and agriculture. The University of Oklahoma, Oklahoma State University and the Samuel Roberts Noble Foundation would be founding consortium members and integral to the mission of the OBC.
Biofuels research supported by the OBC would include development of feedstocks (primarily cellulosic biomass), collection and transportation, conversion technologies and distribution. Because the center would provide a particular boost for the state’s rural and agricultural economy, it would also feature an education component to help interested farmers and ranchers make the transition to energy crops and adopt best management practices.
The Governor announced the initiative this afternoon at a news conference at the state Capitol. He was joined by Oklahoma Energy Secretary David Fleischaker, Environment Secretary Miles Tolbert and Agriculture Secretary Terry Peach.
Gov. Henry said the Bioenergy Center could be funded with $40 million over a four-year period.
"It is important that we move forward now," he said. "In President Bush’s State of the Union address, he spoke at length about a new federal emphasis on biofuels. By creating the OBC, Oklahoma will be at the forefront of the push for renewable energy as private industry and the federal government make significant investments in such research and development efforts."
Coupled with the state’s oil and gas industry, Gov. Henry said, the OBC would make Oklahoma a leader in the energy arena.
"A thriving oil and gas industry certainly does not nullify our need to pursue other sources of energy,” the Governor said. “In fact, more and more oil companies today are making the necessary investments in alternative energy. Aside from the concerns stemming from our dependence on foreign oil, the fact is that oil continues to get harder and harder to find and more expensive to produce. The emerging economic powers of China and India only mean more intense competition for the oil that does exist. "
President’s 2007 State
of the Union Speech - Energy
January, 2007
Extending hope and opportunity depends on a stable
supply of energy that keeps America’s economy running and America’s
environment clean. For too long our Nation has been dependent on foreign
oil. And this dependence leaves us more vulnerable to hostile regimes,
and to terrorists — who could cause huge disruptions of oil shipments
... and raise the price of oil ... and do great harm to our economy.
It is in our vital interest to diversify America’s energy supply
— and the way forward is through technology. We must continue changing
the way America generates electric power — by even greater use of
clean coal technology ... solar and wind energy ... and clean, safe nuclear
power. We need to press on with battery research for plug-in and hybrid
vehicles, and expand the use of clean diesel vehicles and biodiesel fuel.
We must continue investing in new methods of producing ethanol —
using everything from wood chips, to grasses, to agricultural wastes.
We have made a lot of progress, thanks to good policies here in Washington
and the strong response of the market. And now even more dramatic advances
are within reach. Tonight, I ask Congress to join me in pursuing a great
goal. Let us build on the work we have done and reduce gasoline usage
in the United States by 20 percent in the next ten years — when
we do that we will have cut our total imports by the equivalent of three-quarters
of all the oil we now import from the Middle East.
To reach this goal, we must increase the supply of alternative fuels,
by setting a mandatory Fuels Standard to require 35 billion gallons of
renewable and alternative fuels in 2017 -- and this is nearly five times
the current target. At the same time, we need to reform and modernize
fuel economy standards for cars the way we did for light trucks —
and conserve up to eight and a half billion more gallons of gasoline by
2017.
Achieving these ambitious goals will dramatically reduce our dependence
on foreign oil, but it's not going to eliminate it. So as we continue
to diversify our fuel supply, we must also step up domestic oil production
in environmentally sensitive ways. And to further protect America against
severe disruptions to our oil supply, I ask Congress to double the current
capacity of the Strategic Petroleum Reserve.
America is on the verge of technological breakthroughs that will enable
us to live our lives less dependent on oil. And these technologies will
help us bebetter stewards of the environment — and they will help
us to confront the serious challenge of global climate change.
From okcbusiness.com
Oklahoma Sustainable Energy receives more than $5 million for Enid ethanol plant
9/12/2006
Oklahoma Sustainable Energy LLC, an Oklahoma limited liability company formed to promote the development of biofuels and to raise capital to build a state-of-the-art ethanol plant in Oklahoma, announced Sept. 12 it has received investments in excess of $5 million.
The $5 million figure is the amount necessary to break escrow. The equity drive will run through Sept. 26 unless the cap of 499 investors or $14 million is reached before that date.
“We could not be happier with the response from Oklahoma’s agricultural producers and other investors,” said Terry Detrick, OSE’s Chairman and President.
“As awareness spreads and interest increases in the opportunity to participate in building and operating a large scale ethanol plant in Enid, we are pleased with the public response and financial commitments thus far,” Detrick said. “The investment to date of over $5 million exceeds the minimum required for OSE to invest in Oklahoma Ethanol and the Managers and I will continue to work to raise additional funds for this opportunity.”
Detrick said that individuals can still attend a meeting at the following locations: In Enid at the Autry Career Tech Center Sept. 12 at 6:30 p.m. or in Hobart at the Career Tech Center on Sept. 14 at 7 p.m. and in Tulsa at the OSU Tulsa Campus, 700 N. Greenwood Avenue North, Room 150 at 6:30 p.m. on Sept. 15.
When completed in 2008, the new state-of-the-art ethanol plant will sit on 40 acres adjacent to the ADM facility in Enid, Oklahoma. The ADM facility, with over 30 million bushels of licensed storage, has reserved 2,000,000 bushels of grain storage for the plant. The site also provides immediate access to Burlington Northern, Union Pacific and FarmRail railroads.
As one of the most southern ethanol plants in the United States, the Enid site will provide direct access to key ethanol markets in Oklahoma, California, New Mexico, Texas and Louisiana.
The new plant will feature the latest in technological developments to optimize production and efficiency, which, OSE officials say, should make the plant attractive to investors. In addition, the plant expects to convert approximately 20 million bushels of corn and grain sorghum per year into approximately 55 million gallons of fuel grade ethanol, 200,000 tons of distiller grains and 154,000 tons of carbon dioxide. The plant will replace 1.2 million barrels of imported foreign oil per year.
“Oklahoma producers and investors are recognizing the economic benefit of having a modern ethanol plant in Oklahoma. The plant represents a boost for the Oklahoma’s economy. By speeding up the movement of Oklahoma’s corn and sorghum into the marketplace the project will strengthen our state’s vital agriculture industry,” Gary Bledsoe, OSE’s Vice Chairman said. “The plant will enhance the livestock industry by providing a beneficial supply of high-protein, distillers grain preferred by livestock feeders.”
Oklahoma Ethanol LLC, an Oklahoma limited liability company formed as a result of a joint venture between OSE and Oklahoma City based Chaparral Energy, LLC, will own and operate the new plant.
“While a partnership between agriculture and energy to build an ethanol plant is unique, we believe it represents a winning combination,” Bledsoe said.
Chaparral Energy will capture the carbon dioxide and use it to enhance oil production from marginal wells. The sale of products such as carbon dioxide and distillers (feed) grains represent another source of income for the plant.
The Managers and Advisory Board Members of OSE have been at the forefront of advancing the idea of an Oklahoma ethanol plant for more than four years. A feasibility study commissioned by the Oklahoma State Legislature in 2002 and presented in 2004 validated the market opportunity. Enid was selected as the site for the plant in 2005. Through its ongoing equity drive, OSE has developed an opportunity for Oklahoma agricultural producers and other investors to participate in building and operating the new ethanol plant.
Units are available to residents of Oklahoma and Oklahoma businesses. The minimum investment is $10,000. Additional Units may be purchased in one thousand dollar increments. OSE is limited to 499 investors.
In order to purchase Units, investors must meet suitability requirements set out by the Oklahoma Securities and Exchange Commission namely (i) a minimum annual gross income of $60,000 and a minimum net worth of $100,000, or (ii) a minimum net worth of $225,000. In either case, their investment should not exceed ten percent (10 percent) of their net worth. Net worth is determined exclusive of home and tangible personal property.
Oklahoma Sustainable Energy raises minimum needed to invest in ethanol plant
by David Page
The Journal Record
9/13/2006
OKLAHOMA CITY – Oklahoma Sustainable Energy has received equity funding commitments totaling more than $5 million – exceeding the minimum needed to invest in an ethanol plant.
“We have exceeded the amount needed to break escrow,” Terry Detrick, chairman and president of Oklahoma Sustainable Energy, said Tuesday.
The equity drive will continue through Sept. 26 or until the cap of 499 investors or $14 million in commitments is reached.
The ethanol plant is proposed for a 40-acre site adjacent to Archer Daniels Midland’s facility in Enid. The site provides access to Burlington Northern, Union Pacific and FarmRail railroads.
Plans call for the plant to annually convert 20 million bushels of grain sorghum and corn into 55 million gallons of ethanol, 200,000 tons of distilled grain and 154,000 tons of raw carbon dioxide gas.
Construction is expected to begin in early October, Detrick said. Ethanol production could start in early 2008. The plant is to have about 25 employees.
“As awareness spreads and interest increases in the opportunity to participate in building and operating a large-scale ethanol plant in Enid, we are pleased with the public response and financial commitments thus far,” he said. “The investment to date of over $5 million exceeds the minimum required for OSE to invest in Oklahoma Ethanol and the managers and I will continue to work to raise additional funds for this opportunity.”
Oklahoma Sustainable Energy has been conducting meetings around the state with potential investors since mid-August.
Additional meetings are scheduled at 7 p.m. Thursday in Hobart and at 6:30 p.m. Friday at Oklahoma State University-Tulsa in Tulsa.
Detrick expects more investors to make commitments since the minimum has been reached.
“If we had not broken escrow, we would have had to return the money with interest,” he said.
Some potential investors did not want to make a pledge and then have to reinvest their money, he said.
“Anyone who has been holding off can get on the bandwagon,” Detrick said. “But they had better hurry up because time is growing short.”
The equity drive was developed to provide an opportunity for Oklahoma agricultural producers and other investors to participate in building and operating the proposed $90 million ethanol plant. The offering is registered with the Oklahoma Securities Commission.
Units are available to residents of Oklahoma and Oklahoma businesses. The minimum investment is $10,000. Additional units may be purchased in $1,000 increments.
Oklahoma currently does not have a commercial ethanol production facility, but interest has been increasing.
Plans were announced in late August for Orion Ethanol of Pratt, Kan., to build ethanol production plants in Enid and Shattuck. Both plants would be adjacent to existing W.B. Johnson Grain Co. facilities.
Backing for ethanol production also is increasing nationally.
“President Bush’s charge to our country to replace more than 75 percent of the oil imported from the Middle East by 2025 underscores the growing role sustainable energy resources such as ethanol will play in the future,” said Detrick. “When the president called for ethanol to become practical and competitive within six years, he highlighted not only the important role renewable biofuels will play, but also the market viability.”
As one of the most southern ethanol plants in the U.S., the Enid site will provide direct access to markets in Oklahoma, California, New Mexico, Texas and Louisiana. The plant will replace an estimated 1.2 million barrels of imported foreign oil per year.
“Oklahoma producers and investors are recognizing the economic benefit of having a modern ethanol plant in Oklahoma,” said Gary Bledsoe, vice chairman of Oklahoma Sustainable Energy.
“The plant represents a boost for the Oklahoma’s economy,” Bledsoe said. “By speeding up the movement of Oklahoma’s corn and sorghum into the marketplace the project will strengthen our state’s vital agriculture industry.”
Oklahoma Ethanol LLC, formed as a result of a joint venture between OSE and Oklahoma City-based Chaparral Energy, will own and operate the new plant.
“While a partnership between agriculture and energy to build an ethanol plant is unique, we believe it represents a winning combination,” Bledsoe said.
Chaparral Energy will capture the carbon dioxide and use it to enhance oil production from marginal wells.
Enid was selected as the site for the plant in 2005.
Oklahoma City, OK 73124
info@OKSustainableEnergy.com
