Florida ag department announces grant recipients

January 10, 2008

BY Kris Bevill

Web exclusive posted Jan. 24, 2008, at 11:37 a.m. CST

On Jan. 22, the Florida Department of Agriculture announced 12 recipients of $25 million in grants as part of the "Farm to Fuel" program. The program is part of the 25x'25 initiative spearheaded by Agricultural Commissioner Charles Bronson. It is designed to spur the state's agricultural industry to produce 25 percent of Florida's energy needs by 2025. "We believe that awards such as these are critical in triggering the development of a renewable energy industry in Florida," Bronson said.

Grant recipients included Gulf Coast Energy of Walton LLC, which was awarded $7 million for the construction and operation of ethanol and biodiesel plants in Mossy Head, Fla. Gulf Coast Energy plans to begin construction of the $62 million project in the next few months and expects to begin producing biodiesel by the end of the year. The company plans to produce ethanol in early 2009.

Another major money recipient was U.S. Envirofuels LLC, which also received $7 million from the state. The ethanol company will use the funds toward the construction of a $47 million ethanol plant in Highlands County.

Liberty Industries received $4 million to go toward a $38 million ethanol/electricity proposed plant that would use forest waste products as a feedstock. The company is an affiliate of Liberty Chips Corp., a wood chip producer located in northwest Florida. Liberty Industries President Sam Hatcher said his company will use the grant specifically for equipment and construction of the plant. After a site has been finalized, construction can begin immediately. Hatcher expects to be producing ethanol in 2010.

Florida's wealth of citrus groves hasn't been overlooked by the renewable fuels industry, and the agriculture department handed out money to a few of those companies looking to turn citrus waste to fuel. Southeast Biofuels LLC, a subsidiary of Xethanol Corp., received $500,000 to aid in the building of a pilot plant that will produce ethanol from citrus peels. A little more than $200,000 was given to Applied Research Associates Inc. in Panama City toward research and development involving converting cellulosic materials to fermentable sugars.

Deputy Agricultural Commissioner Jay Levenstein said the department is pleased with the results of the grant disbursement this year. He said Florida, like many states, is experiencing budget shortfalls, but he hopes it will be able to continue the program next year as long as funding is available.

Companies that received grant money are required to match the contribution with their own money or otherwise raised funds. Entities chosen for the grants are contributing more than $150 million of their own resources to these projects. "We're not looking to build our own state-funded ethanol plants or biodiesel plants, or completely fund other projects," Levenstein said. "We like to be in a position where we can help out, but they've also got to be able to come to the table with some of their own assets. I know from talking to some of these companies that funding like this really puts them over the top of the hill as far as being able to complete their project."

Seventy-six grant applications were received by the agriculture department. Proposals were evaluated on set criteria, including use of Florida-grown crops or biomass to produce energy, the company's potential to expand agribusiness in Florida, preliminary market research, and the efficiency of their use of energy and other material resources.

Advertisement

Advertisement

Advertisement

Advertisement

Upcoming Events

Sign up for our e-newsletter!

Advertisement

Advertisement