The Governor Continues to Implement Energy Independence Plan by Providing $4.8 Million to Help Build Biodiesel Production Facility

DANVILLE – Gov. Rod R. Blagojevich’s top economic development person celebrated the groundbreaking today of a new $30 million biodiesel production facility in Danville.  Biofuels Company of America, LLC is receiving about $4.8 million Opportunity Returns grants to construct the new plant that will create about 15 new jobs.  The Illinois Finance Authority is also providing a loan guarantee of $15 million for the project.  The operation of this facility will also help secure up to 100 existing jobs at an adjacent soybean crushing plant.  Illinois Department of Commerce and Economic Opportunity Director Jack Lavin joined company representatives and state and local officials in Danville for the announcement.

“If we make these kinds of investments now in biodiesel and ethanol, within ten years, we’ll be able to produce enough energy from our own natural resources to cut our dependence on foreign energy in half.  That means billions of our hard-earned dollars will stay here at home, in our economy, creating more jobs, rather than leaving Illinois forever.  We have the resources.  We have the technology.  We have the expertise.  And if we start today, we can solve this problem in the next ten years.  No other state can say that.  But we can do it here in Illinois, and this important project is going to help us do just that,” Gov. Blagojevich said.

This new plant, developed by Biofuels Company of America, LLC, a joint venture between Bunge North America and Biodiesel Investment Group, LLC, will produce 45 million gallons of biodiesel per year using the equivalent of 30 million bushels of soybeans.  Bunge will supply the oil, which will be produced at the soybean processing facility adjacent to the proposed plant.  
     
“With the leadership of Gov. Blagojevich and the support from DCEO, IDOT and the IFA, the state of Illinois has put in place the right mix of incentives to attract state-of-the-art biofuels investments like the proposed facility in Danville into the state,” said Mark Burke, President and CEO of Biofuels Company of America, LLC. 

This groundbreaking follows the Governor’s recent announcement of his energy independence plan to replace 50 percent of the state’s current supply of imported oil with renewable homegrown biofuels like ethanol and biodiesel.  The Governor proposes investing $100 million over the next 5 years to build up to 20 new ethanol plants across Illinois.  The additional ethanol production would generate an estimated $1.7 billion in business investment.  The Governor also proposes investing an additional $100 million over the next ten years to build four plants in downstate Illinois using new technology to create ethanol made from plant waste materials like corn husks and wood pulp – or “cellulosic ethanol.”  This means boosting the state’s annual ethanol production by more than 200 percent and meeting 50 percent of gasoline needs by 2017.  And, the Governor’s plan would invest $25 million to help build five new biodiesel plants, boosting the state’s production by 200 percent to 400 million gallons per year or the equivalent to 25 percent of the state’s annual diesel fuel needs by 2017.  This additional biodiesel production will generate another $225 million in business investment in Illinois.  This plan would create almost 20,000 construction jobs and 10,000 permanent jobs.
 
“Gov. Blagojevich and I understand that by supporting renewable fuels today, we are creating a more secure future.  The only way we are going to increase our energy independence is by creating a business climate that encourages investment and innovation.  This public-private partnership is a great example of bringing new jobs to our community in way that helps us all,” State Representative Bill Black (R-Danville) said.

Gov. Blagojevich has combined the resources of both the Illinois Finance Authority, which is providing a loan guarantee of $15 million for the project, and about $4.8 million in grants for the new biorefinery through the Renewable Fuels Development Program from the Illinois Department of Commerce and Economic Opportunity (DCEO) and the Illinois Department of Transportation (IDOT).  

In June of 2003, Gov. Blagojevich also signed into law a complete state sales tax exemption for biodiesel blends of 11 percent or higher, as well as for the high-ethanol blend known as E-85.  Consumers have saved more than $200 million as a result of these exemptions on B-11 and E-85 since 2003.  This valuable tax exemption has multiplied the size of the biodiesel market by 30 times since 2003 - making the biodiesel market 30 times larger than it was before.  This demand is now creating the demand for new biodiesel plants, such as the Biofuels Company of America facility in Danville.

“Gov. Blagojevich is committed to leading the way for biodiesel by creating the largest biodiesel market in the nation here in Illinois.  Through the complete state sales tax exemption for B11, and through his support of production facilities like this one, he is certainly succeeding,” Illinois Department of Commerce and Economic Opportunity Director Jack Lavin said.

“The successful launch of this biodiesel plant reflects the best of what can happen when a strong operator, who brings an innovative vision, a committed bank and investors, who focus on regional growth, and a Governor, who provides unprecedented state support for the development of renewable fuels, work together. The IFA is proud to have played a catalyst role in the financing package that helped bring this plant and its new jobs to Illinois,” IFA Interim Executive Director Jill Rendleman said.

Illinois added more new jobs than any other state in July - 31,100 new jobs.  This is the second time this year Illinois has created more new jobs than any other state, which has never happened before in recorded history.  Illinois also led the nation in job growth in April.  The total number of new jobs created this year is 76,400, which is the best start to a year since 1998, best in the Midwest and fifth in the nation.  Since January 2004, Illinois has gained more than 151,000 new jobs, which is also best in the Midwest. 

It was recently announced that Danville recorded its lowest unemployment rate in 32 years for September 2006.  The Illinois unemployment rate has dropped from 6.7 percent in January 2003 to 4.4 percent, which is its lowest level since October 2000.  It has remained at or below the national rate for five consecutive months, which is the first time this has happened in seven years.  The federal Bureau of Labor Statistics and the Illinois Department of Employment Security compiled these statistics.