January 30, 2006

Ground broken in Maricopa

MARICOPA - Ground was broken today for Arizona's first ethanol production plant, which is to provide 45 jobs and a clean-burning vehicular fuel used in Arizona.

"This project is significant to Arizona's energy security and air quality," Gov. Janet Napolitano said in a press release. "It will reduce our dependence on out-of-state ethanol and will contribute greatly to improving air quality for Arizonans."

Ethanol is a blending component for winter-season gasoline in the Phoenix and Tucson areas. The two metro areas consume an average 600,000 gallons of ethanol each day. Production of E85, a blend of 85 percent ethanol and 15 percent gasoline, will be a major focus at the new facility. E85 is currently available at a limited number of gas stations. The ethanol produced at Pinal Energy LLC will service Arizona, Nevada and California markets.

"We are excited about providing a local source for Arizona's ethanol energy needs," said John Skelley, president of Arizona Grain, an equity holder in the project. "This state-of-the-art plant and environmentally friendly process will produce ethanol from corn for blended fuels and E85 fuel for flex-fuel cars. By producing ethanol in Arizona, we hope to encourage more blending of ethanol with conventional gasoline and promote the availability of E85 for flex fuel vehicles."

"As we look at Arizona's future growth, we need to consider technologies that drive more jobs and produce cleaner energy," said Gilbert Jimenez, director of the Arizona Department of Commerce. "There's incredible opportunity here to create higher-paying jobs in Arizona."

"The impact the facility will have on the local economy is substantial as it will create jobs, provide an additional industrial tax base for the city of Maricopa, Pinal County and the state of Arizona and create another market for Arizona's farmers," said Mayor Kelly Anderson of Maricopa. "The city is encouraged by the corporate commitment Pinal Energy has shown by continuing to meet Maricopa's standards for safety, trucking routes, site plan, building elevations and landscaping designs."

"We are very excited about Pinal Energy's project in Maricopa," said Lori Gary, executive director of the Greater Casa Grande Valley Economic Development Foundation. "We want to strike a balance between housing and employment in the region. Pinal Energy will bring both significant investment and quality jobs to the area. The foundation and the Arizona Department of Commerce have worked in partnership on this project for several years."

In addition to ethanol, distillers grain and carbon dioxide (liquefied and dry ice) will be produced at the facility. Both are byproducts of ethanol production.

Construction is expected to take one year. Ethanol production would begin in the first quarter of 2007, with a production rate of 55 million gallons annually.

©Casa Grande Valley Newspapers Inc. 2006