Our Saving Grace?

The Proposed Ethanol Plant

**UPDATE** May 2006, According to the News Star, Monroe's newspaper, Lake Providence has scored the ethanol plant, which will reportedly bring 50 - 60 jobs to the area plus construction jobs in the building of the plant.  The $170 million dollar plant, being built for Bioenergy International, LLC out of Massachusetts by James Construction Group of Baton Rouge, will produce 100 million gallons of ethanol.  Ethanol is an alternative fuel source made from corn.  The Lake Providence Port Commission has secured $9 million dollars in Louisiana Port Priority Grants to improve the current infrastructure, including a foundation for the plant, the building of grain storage facilities and improvements to the railways that will bring in the raw product and ship out the ethanol.   

For years, there has been talk of various industries that planned to locate in Lake Providence.  At this time, we still have no industries and no jobs.  The latest, and most likely to come to fruition, is the proposed ethanol plant.

The town of Lake Providence is one of the sites being considered for an ethanol plant that would be built by the company Bienol of Norwell, Massachusetts.  The $55 million dollar plant, which would be one of the few outside of the Midwest, would be built on a 40 acres site near the Lake Providence port beginning next year.  The port is located south of town off of Highway 65.  The port would receive $4.85 million dollars in federal, state, and regional grants for site development.  Another $8 million dollars from the Port Priority Program would help Lake Providence improve the port's infrastructure.

The plant would provide jobs for 30 - 40 people with a total payroll of $2 million dollars.  Wages would range between $45,000 and $55,000 a year, which is well over the average wages now earned by citizens of East Carroll Parish ($14,563 dollars a year).  The unemployment rate of East Carroll Parish is currently 22.3%.

Ethanol is fermented and distilled simple sugars found in corn, sugar, wheat, and grain.  Corn would be the main raw material used. This distilled liquor is mixed with gasoline and becomes fuel for industrial use.  Without the gasoline, the product is considered food grade; the most popular is a liquor called "Everclear."  A plant this size would use 14.3 million bushels of corn from northeast Louisiana and southeast Arkansas.  Wholesalers in Texas and Louisiana would be the target market.

There are drawbacks to any enterprise and the ethanol plant is no exception.  The plant would produce waste water and by-products.  Although, the by-products can be used to feed livestock.  Also, the plant will give off an odor, but it is said to be nothing compared to the pungent smell of a paper mill.  There are also several obstacles that we must overcome.  Financing is a huge problem despite the grants, etc that are listed above.  Also, an energy bill that is currently being considered by Congress must pass to keep tax breaks available.  And, most important is the vital upgrade of the current railroad system. 

           A Moonshiners Dream!

Without the railroad, it would be difficult for raw materials to reach the port, and almost impossible for the finished product to reach wholesalers.

Lake Providence is in desperate need for this plant or for something that would equal its' financial impact.  Let's hope that the deal can be finalized and construction can begin early next year.

Back to Lake Providence

Sources:

Article from Vicksburg Evening Post