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Study estimates biorefinery's economic impact

10/26/2011
By:
Larisa Brass

 

VONORE — Dupont Danisco Cellulosic Energy may not have announced definitive plans for siting a commercial biofuels plant in the state, but University of Tennessee researcher Edward Yu has some suggestions.

 

As part of a study on the local economics of building a switchgrass-fed ethanol plant, Yu found a location in Monroe County near Sweetwater and 20 miles west of the current pilot plant, to be among a handful of sites across the state that could be ideal for such a facility — and the feedstock to support it.

 

The assessment, which covered the entire state, broke Tennessee into regions — East, Middle and West — and identified the best spots within each for locating such a facility, Yu said. Other prime spots in East Tennessee are in Greene and McMinn counties. Middle Tennessee actually ranked highest among the regions in terms of optimal cost for locating a biorefinery, Yu said.

 

Supporting the local plant, estimated to produce about 50 million gallons of ethanol per year, would be 13 surrounding counties where approximately 76,000 acres of switchgrass could be grown, Yu said during a presentation to farmers at the University of Tennessee's biomass field day Tuesday. This support would spur direct and trickle-down economic development activity, he said.

 

The biorefinery investment would result in $160 million in direct contribution to the local economy each year and 77 jobs. Indirectly, the plant annually would pump $19.9 million into the local economy and create 192 jobs, according to the economic impact study.

 

On the switchgrass production side, Yu estimates the direct economic contribution to be $36.8 million annually and 907 jobs, with the indirect yearly impact totaling $15.6 million and 183 jobs.

 

"We believe development of a local/regional bioenergy industry certainly will keep the money at home," he said. "The responsibility of the local economic development agencies is very important to make these things happen."

 

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