Hopewell plant receives investment to kick-start production

Vireol Bio Energy LLC will commission the Hopewell plant, formerly owned by Osage Bio Energy facility to begin ethanol production.

Governor Terry McAuliffe announced on Wednesday April 9 that the company, which will produce ethanol from corn, barley and other small grains, will invest more than $26.2 million (€19 million) to begin production at the plant.

The plant will be the largest ethanol plant on the East Coast of the US.

McAuliffe emphasises how the investment will diversify the Commonwealth's economy, encourage them to begin ethanol production in Virginia and establish a new market where farmers will be able to sell their grains.

Vireol Bio Energy will also spend over $100 million to purchase 21.7 million bushels of grains, for use over the next three years. The company hopes to produce more than 170 million gallons of ethanol over a three year period, utilising corn, wheat and barley, which will then be blended with petrol for fuel.

The Commonwealth of Virginia is partnering with the city of Hopewell and Vireol Bio Energy on this project through the Governor's Agriculture and Forestry Industries Development Fund (AFID), which is awarding a grant of $250,000 to Vireol.

Todd Haymore, Virginia secretary of agriculture and forestry, adds: 'Vireol's commitment to source at least 30% of their grain needs from Virginia, as required by the AFID grant, creates a substantial opportunity for grain producers. The by-products from this facility, like the dried distiller grains, a much sought after component of animal feed, also provide new domestic usage and export opportunities.'

The company will improve the facility's ethanol production capabilities as well as expand and construct new processes at the site.

Peter McGenity, chief executive at Vireol Bio Energy LLC announced that ethanol production will begin this month.