Company News
$2 Billion Energy, Agricultural Center Near American Falls
American Falls, Idaho, June 27
Southeast Idaho Energy (SIE) LLC announced
today that it is moving ahead with plans to construct a $2 billion agricultural products and energy
facility in Power County. Named the Power County Advanced Energy Center, it will produce
fertilizers and ultra-low-sulfur diesel fuel.
Ramesh Raman, SIE president, said the company is ready to begin the process of
obtaining permits for the facility.
The Center will be located in the heavy industrial zone southwest of American Falls,
south of the Lamb Weston plant and east of Idaho Power’s Borah substation. SIE has an option
on more than 450 acres there.
Raman said the Center would be built in two phases. In Phase 1, estimated at $1 billion,
SIE would install one gasifier to turn coal and petroleum coke into more than 4,000 tons of
fertilizer and 1,400 barrels (58,800 gallons) of diesel per day. In Phase 2, estimated at another
$1 billion, the company would add two gasifiers to boost diesel output to 8,400 barrels (350,000
gallons) per day.
SIE hopes to begin construction late next year, with startup of Phase 1 in 2011-12.
Construction will require about 700-1,000 workers over a six-year period.
Raman said that about 150 employees would be needed to operate Phase 1 facilities.
“We will be creating jobs that pay well,” he said, “and we are committed to hiring locally. As we
approach operations, we plan to work with local institutions to create a workforce training
program.”
Besides stimulating the local economy, the project will contribute to local taxes. “We
expect to make a substantial contribution to the tax base of Power County,” Raman said.
SIE is a subsidiary of Refined Energy Holdings (REH), which is headed by Raman and
based in Mount Kisco, N.Y. and Denver, CO. Raman said REH has secured the equity funding
necessary to advance the project. He added that “Once we receive our permits, we will seek a
lender to complete the financing of the Advanced Energy Center.”
SIE Plans $2 Billion Energy, Agricultural Center Near American Falls
According to Raman, “This project is a small, important step toward energy
independence. Significant advances in technology now make it possible for our country to put its
vast coal resources to clean use and reduce our dependence on imports. We will demonstrate to
the Idaho Department of Environmental Quality that our Center will operate well within the most
stringent air quality standards, which are set and enforced by federal and state government
agencies to protect human health and the environment. Advanced clean coal and environmental
technologies enable us to do so.”
SIE has secured water rights to meet Phase 1 and Phase 2 requirements. In Phase 1, the
Center is expected to use up to two million gallons per day. SIE plans to design the facility for
zero water discharge.
“The Power County Development Authority (PCDA) deserves a great deal of credit for
the project,” Raman said. “Through the support and efforts of PCDA, we have defined a project
that makes sense for us, for the county and for its residents. It also makes sense for Idaho. There
is an excellent market for fertilizer and diesel products in the state, and in the region as well.”
Almost two years ago, Raman proposed an electric generating plant for the FMC site in
eastern Power County. “As the project evolved, we became convinced that a facility to produce
fertilizer and diesel not only made commercial sense, but also would have greater benefits for the
region,” he said.
Raman explained that as plans for the Center developed, “We found that the available
property at the FMC site could not accommodate the Center.” He thanked FMC for its efforts to
help him to make use of the FMC site.
The Advanced Energy Center will produce electricity for internal use.
Raman said SIE will keep Power County residents informed as the project progresses.
“In addition, we are interested in any ideas and questions that residents might have. That’s an
important part of our commitment to ensuring that our facility will be a positive addition to the
county.”
Questions and comments about the proposed facility should be directed to John Burk, SIE
and REH director of communications, at 724-871-7888 or j.burk@rehinc.com