The Governor Continues to Implement Energy Independence Plan by Delivering $6.35 Million in Grants For Union-Built, Cutting-Edge, Clean Coal Powered Biorefinery

CANTON – Gov. Rod R. Blagojevich’s top economic development official today attended the ceremonial groundbreaking of Central Illinois Energy LLC’s $100 million ethanol production facility that will include an integrated coal-fired combined heat and power (CHP) plant.  The new biorefinery, being built in Fulton County near Canton, will create 45 new jobs.  The Governor recently announced a $4.5 million grant through the Renewable Fuels Development Program from the Illinois Department of Commerce and Economic Opportunity (DCEO), a $750,000 grant from DCEO’s Illinois Coal Competitiveness Program and $1.1 million in infrastructure assistance from the Illinois Department of Transportation’s Rail Freight program for this innovative project.   

“If we invest now in ethanol and other biofuels, 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.  And the federal government hasn’t even conceived of that yet.  But we can do it here in Illinois, and Central Illinois Energy is going to help us do just that,” Gov. Blagojevich said.

This 37 million gallon per year plant will use about 13.1 million bushels of corn annually and produce about 111,000 tons of livestock feed (distillers dried grains) each year.  Because the facility will use an associated coal-fired, combined heat and power plant technology, it will be very clean and energy efficient. 

“I want to commend Gov. Blagojevich for his commitment to this plant and for sticking with us as we worked towards making our financing a reality.  This project is a textbook example of what can be accomplished when government, labor and agriculture combine their efforts and work towards a common goal.  CIE will add more than $50 million each year to entire downstate economy,” said Mike Smith, General Manager for Central Illinois Energy.
  
This ceremonial 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.

“This is a tremendous day for all of Illinois because so many people have come together to make us more energy independent.  Gov. Blagojevich and I are proud to invest in this innovative project that is going to help our unions, our farmers and our coal miners while lessening our dependence on foreign oil.  This is a common sense energy strategy that everyone needs to pay attention to,” State Senator George Shadid (D-Pekin) said.

“I understand that there are innovative ways to decrease our dependence on foreign oil, while providing an important boost to our economy.  These Opportunity Returns grants to Central Illinois Energy strongly demonstrates our commitment to ethanol as an important part of our energy future,” State Representative Mike Smith (D-Canton) said.

“On behalf of the West-Central IL Building Trades, I’d like to thank the Central Illinois Energy team and Gov. Blagojevich for their perseverance and tenacity in bringing this much needed, job creating project to Central Illinois.  Gov. Blagojevich’s vision, to replace high imported energy costs with high wage jobs in renewable fuels and clean coal, is the right vision for Illinois and America,” said Mike Everett, Council President of the West-Central IL Building and Construction Trades Council.

In a strong partnership with the project, several local labor associations are not only involved with the construction of the project but are also investors.  Labor organizations including the Mid-Central Illinois Regional Council of Carpenters and Joiners of America, the United Association Pipe Trades Council #34, the Laborers International Union Local Union #231, the International Union of Operating Engineers Local Union #649, and International Brotherhood of Electrical Workers Local Union #34 invested a combined total of $410,000.

“Illinois is one of the leaders in annual corn production, and, with Gov. Blagojevich’s vision, we are now leading the nation with new programs to support biofuels such as ethanol.  We need to aggressively support this growing industry to continue expanding our economy in a way that is forward thinking and environmentally responsible.  We are opening the door to a new era of energy independence,” DCEO Director Jack Lavin said.