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.
Unique project
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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