Bio Energy looks to Charleston

City eyed as home for ethanol plant

The Charleston area could become home to one of the nation's largest alternative energy plants if the ambitious plans of a Virginia-based company bear fruit — or rather, corn.

International Bio Energy is considering sites in the Lowcountry and in Chesapeake, Va., as locations for what could be two $450 million ethanol plants.

The company said Monday that, although the two sites currently are competing locations for one plant, building two plants is a "real possibility."

"There's enough purpose and reason to build in both places," said Richard Starnes, program manager for the Chester, Va., company. "It's just a question of which you build first."

He declined to specify the Charleston-area location the company is considering or in which county it would be. The site would have to be at least 90 acres, he said.

Likely built in two phases, the Charleston plant could produce 216 million gallons of ethanol a year, Starnes said, making it one of the biggest in the country. That kind of output would require about 80 million bushels of corn a year.

Total U.S. production last year was about 10.5 billion bushels, according to U.S. Department of Agriculture data.

"That's a lot of corn," Starnes said.

Ethanol, or ethyl alcohol, is made by fermenting and distilling sugars from corn. The corn would be bought from domestic suppliers, including South Carolina farmers, Starnes said, and also from overseas.

It's no coincidence the two U.S. sites are close to major East Coast ports, he said. The proposed Chesapeake site is along the Southern Branch of the Elizabeth River, close to the Port of Virginia's Norfolk terminals.

The second plant would be built about five years after the first, Starnes said. The company has not reached a deal on a location here or decided which plant would be built first.

"There's discussions going on for property, then we've got to get into the permitting," he said.

Melissa Whetzel, spokeswoman for the Charleston Regional Development Alliance, said she could not comment on whether her group is working with the company on a site because it does not disclose details of ongoing discussions.

Interest in the alternative energy industry and how South Carolina can tap into it has gathered speed in recent years.

Last fall at an alternative energy forum, state House Speaker Bobby Harrell, R-Charleston, described renewable fuels as "the next big industry" because they have the potential to supply clean, efficient energy.

In South Carolina, the industry and related businesses could help reduce unemployment by way of jobs creation, higher wages and better living standards, he said.

If Bio Energy's project goes forward, it will dwarf operations at another Charleston alternative energy processing plant that started up near the beginning of the year.

Southeast BioDiesel's $5 million biofuels processing plant on part of the former Navy base in North Charleston will produce about 30,000 gallons of fuel every 24 hours when operating at full capacity.

Southeast BioDiesel converts waste vegetable oil from area restaurants and other sources into a nontoxic, low-cost alternative fuel that can be used in nearly all conventional diesel engines.

If it runs year-round, the plant would produce almost 11 million gallons a year, about 5 percent of Bio Energy's proposed output.

A plant in Charleston or Virginia would be Bio Energy's first in the United States. The company also plans to build facilities in Germany and Hungary, Starnes said. During the next 10 years, the company plans to build seven plants here and overseas, he said.

"We're serious about this," he said. "It's not just an idea."

Reach Peter Hull at 937-5594 or phull@postandcourier.com.