Small Town Florida

Sponsored by Progress Energy

"Farm to Fuel" Happening in Rural Highlands County, Fla.

By Lee Burlett

One of South's largest rural economic development projects is underway in Highlands County, Fla. The project, if successful, could pave the way for many others like it in the rural South.

In 2009, Massachusetts-based Verenium and BP, one of the world's largest energy companies, announced plans to build the first commercial-scale cellulosic ethanol plant in Highlands County. The companies have entered into a long-term agreement with Lykes Bros., Inc. a multi-generational Florida-based agri-business to provide the agricultural biomass for conversion to fuel.

The 50-50 joint venture project, which will operate under the name of Vercipia Biofuels, is the first in the nation to use next-generation cellulosic ethanol technology to convert renewable grasses to fuel, rather than processing food crops. The plant is expected to produce up to 36 million gallons of ethanol per year and provide the region with 140 full-time jobs and about 600 construction jobs. Construction on the plant is expected to begin in 2010 and it will take two years to complete the $300 million project.

Carlos A. Riva, Verenium's President and CEO, said that the plant will be a model for similar facilities in the future. "This plant, the first of many we anticipate in the years ahead, will help fulfill the U.S. government's mandate for advanced, sustainable biofuels to meet America's energy needs," he said. “The facility will serve as a blueprint for how we develop future projects."

The project has been awarded a $7 million grant under Florida's "Farm to Fuel" initiative, designed to stimulate the development of a renewable energy industry in Florida. Florida has received $63 million from the American Recovery and Reinvestment Act of 2009 for economic development projects in renewable energy and energy efficiency.