A proposed plant in Rapho Township may use a new kind of sugar beet to make an alternative fuel that could be added to gasoline.
And local farmers, who will be asked to grow the special beets, could be winners if the plant is approved.
Representatives for Maibach LLC presented a proposal for a potential agri-energy plant to Rapho Township officials on April 14.
Rosemary McAvoy of Enmarq, founder of the Alternative Fuels Renewable Energies Council, said she and her firm are business consultants with Maibach owner Paul Wheaton on the proposal.
The Maibach Agri-Energy Center would be the first commercial-scale bioenergy plant of its kind in the United States, she said.
Wheaton also is CEO of Lancaster Propane Gas, which operates a propane transfer facility on a 33-acre tract at 55 Maibach Lane, off Route 230 near the intersection of Eby Chiques Road. The site is served by a rail siding as well as public water and sewer.
The new plant would use a genetically engineered sugar beet called an "energy beet" to produce "low carbon transportation fuel," an advanced biofuel that is a gasoline additive.
"The facility would help the U.S. get away from its dependence on oil from the Middle East and keep dollars in the local economy at the same time as it provides an affordable, clean energy product," Wheaton said.
The second-generation sugar beets produce a biofuel derived from the sugar and starch of the celluostic plant. McAvoy said the Maibach plan consists of two components — introducing the energy beet to the agriculture industry as a new crop and the construction and operation of a facility that uses the energy beet to create advanced biofuel and electricity.
"The neat thing about this energy beet is that it is a brand new crop — it's something farmers do not already grow — so it produces a new revenue stream for them. It's also a rotational crop that doesn't have a specific season, so it can be grown around other crops," she said.
The beet also acts as a natural nutrient management system — it has a long tap-root system that absorbs phosphorous and nitrates from the ground and helps keep them from reaching the Chesapeake Bay.
It also has several advantages over corn, which is commonly used to make ethanol.
The price of corn spiked because of an increase in demand by the alternative fuels market, McAvoy said. That would not occur with the energy beet because it is a new agri-fuel source and its price is not part of the commodities futures market.
Another advantage is that part of the Maibach proposal is to create a local co-op to grow the beets. The growing season for the beets is four to five months, and crops can be planted as often as three times a year, depending on the climate.
"It's a community-based business plan that benefits the local farm community," McAvoy said.
Farmers in the local co-op would have access to the specially designed harvesting equipment through a lease from Maibach.
"We believe that our holistic approach to involve business at the local level to provide goods and services to the energy industry is a pragmatic approach to ensure success and long-term economic development," McAvoy said. "Although still in its infancy, we have created a business plan that embraces change and intends to contribute to future development of even more advanced technology."
The proposed facility would be built on 11 acres of the Maibach site. Specific details of the proposed land development plan, which would include several tanks, are not yet available.
McAvoy said the proposed facility is expected to cost $83 to $92 million and would employ 35 to 40 workers.
Wheaton said the refinery would be a closed-loop system that produces zero emissions. Its only byproduct is water from the beets. The refinery would require an initial charge of 500 gallons from the local public water system and then would be self-sustaining with regard to water usage, he said.
The proposed refinery is half the size of traditional biorefineries and costs one-third less to build. Its unique design is adaptable to retrofit existing biorefineries that have outdated technology.
McAvoy hopes the plan can be fast-tracked so it can qualify as a "shovel-ready" project that could be funded by a grant from the federal economic stimulus funding. Deadline for applications for funding is May 29.
Rapho officials said the project will have to be reviewed by the township zoning officer to determine if it requires a conditional-use hearing or a land-development plan. Officials urged McAvoy and the engineer for the project, Lake Roeder Hillard & Associates, to submit information as quickly as possible in order to have something to report on the funding application.
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