Ethanol plant to be developed in Orleans County

Governor George E. Pataki announced nearly $6 million in State funding to assist Western New York Energy (WNYE) in the development of the first state-of-the-art dry mill ethanol plant in New York. The $87.4 million facility is to be located on 144 acres in the Town of Shelby, Orleans County.

"Western New York Energy's new facility in the Town of Shelby will help us take advantage of this opportunity to reduce our dependence on unstable foreign energy supplies," Pataki said. "The new facility is expected to produce 50 million gallons of ethanol a year and create 58 new jobs and represents another significant step in our goal of developing a strong biofuel industry in the state which will not only provide an economic boost to our farming community, but keep our energy dollars here in New York."

Chairman Orleans County Legislature George R. Bower said, "We are very excited to have an investment of this size and scope coming to Orleans County."

The WNYE plant, which is scheduled for a construction start this summer in the Orleans County Empire Zone, is expected to annually produce a minimum of 50 million gallons of fuel-grade ethanol, 250,000 tons of distillers grains, and 95,000 tons of carbon dioxide. The plant is expected to begin production in January 2008.

Ethanol is a clean-burning, high-octane fuel that is combined with unleaded gasoline to produce ethanol-blended fuel, which has higher octane than gasoline alone. There are more than 180,000 flexible-fuel vehicles registered in New York State that can run on gasoline or ethanol. The New York State Thruway Authority will install or convert at least one pump at each of its 27 travel plazas to dispense renewable fuel. The New WNYE ethanol plant will purchase an estimated 6 million bushels of corn each year, benefiting Upstate corn farmers.

Chief Executive Officer of Western New York Energy LLC, John Sawyer said, "The Shelby location has been selected due to is proximity to the New York and Connecticut ethanol markets, the nearby western New York dairies, outstanding rail-transportation links and the excellent economic climate provided by Orleans County. Likewise, the area includes a terrific pool of qualified, skilled employees and construction workers."

John Lincoln, president, New York Farm Bureau, said, "There is no doubt that biofuels production will have a significant and beneficial impact upon the agricultural industry in New York. Western New York Energy will provide an expanded corn market for farmers and exciting opportunities for the growth of new commodities for ethanol production, while at the same time returning the co-product -- dried distillers grains -- to our dairy industry as feed supplement. We are tremendously excited by the prospect of working with Western New York Energy for years to come."

May 14, 2006