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, which is the first of its kind to be awarded by the
Commonwealth, will total US$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. Additionally, 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.
Alltech's rural community biorefinery will be the first in the US to
utilise 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.
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