The energy company approved by the Port of Albany to build a $350 million ethanol plant could sub-lease the port property for a biofuel waste-to-energy facility, the company president said.
Albany Renewable Energy LLC, the company planning to build the plant at the port, has discussed with Casella Waste Systems, based in Rutland Vt., the possibility of building a biofuels plant at the site, according to a copy of the lease agreement.
Albany Renewable President Ed Stahl said his company continues to develop plans for the corn ethanol plant, however.
“We’ve certainly not consummated any deals [with Casella] at this point,” he said.
The 20-year lease with the port requires that construction begin no later than August 2010.
Finding funding for large energy projects is “always challenging,” Stahl said, and it’s even more difficult to raise money in today’s economy. Albany Renewable won’t seek out investors until the project is further along, he said.
Fermenting sugars and starches to make ethanol from corn produces carbon dioxide. Should the ethanol plant go forward, the company would sub-lease space for a carbon dioxide processing facility.
Port General manager Rich Hendrick said the lease agreement allows Albany Renewable Energy to sub-lease all or part of the 18 acres it leases, provided the port approves the tenant.
Albany Renewable has paid its $30,000 monthly lease payment since the agreement took effect in July. The company hasn’t approached the port about leasing to another tenant, Hendrick said.
The port authority in June awarded the contract to build one of the plants to Albany Renewable, one of three bidders. The second bidder, Empire State Ethanol & Energy of Cooperstown, has since filed a lawsuit against Albany Renewable Energy. The suit alleges that the company used confidential information to obtain port rights for the plant. It also alleges that BBI International of Colorado and BioPro Resources of North Carolina conspired to create Albany Renewable Energy after BBI researched several potential plant sites for Empire State Ethanol.
Casella Waste Systems Inc. was the third bidder for the ethanol plant lease. Casella Albany Renewables was created the day before the sub-lease was signed. A call to Casellas was not returned.
Chris Von Zwehl, CEO of Empire State Ethanol, said his company is considering further legal action against the port and other involved parties with regard to the sublease option.
