Velocys chooses Natchez, Miss. as site of its first U.S. biorefinery
Velocys’ first U.S. biorefinery will be located in Natchez, Adams County, Miss., the company announced. Velocys has been offered an attractive package of economic development incentives to locate the plant at this advantaged site.
Velocys has been offered economic development incentives from Adams County estimated to be worth the equivalent of USD42 million. The project expects to qualify for additional incentives worth up to USD15 million, provided via Mississippi’s Advantage Jobs Act and other statutory tax incentives. These incentive packages would reduce the company’s future tax liabilities and are subject to Velocys meeting certain minimum requirements for capital investment and local employment opportunities.
Velocys has also received commitments from Adams County worth approximately USD4 million (relating to the land and upgrades to the site) and USD1 million site upgrade commitments from local utility suppliers, further increasing the attractiveness of the site.
The 100-acre Natchez site was confirmed after the company analysed a broad set of operational and tax considerations at 12 possible sites in four states in the Southeast United States. Due diligence, including site visits, was completed at each of these sites and incentive offers were received from each state in question.
The analysis lays the foundation for future biorefineries: Velocys is maintaining its list of other advantaged sites in the region, which could host plants with capacities totalling 100 million gallons over the next 10 years.
This announcement completes one of the work packages required for the U.S. Department of Agriculture (USDA) loan guarantee application announced in June 2017. Site permitting activities have now begun for the Natchez site.
“This is an important step towards the development of our first biorefinery in the U.S. to address the attractive and growing renewable fuels market. We welcome the significant support for this plant at the local level, including the future financial support that further enhances plant economics. Velocys and its partners are continuing to make significant progress towards completing other work packages needed to deliver a successful USDA loan guarantee application, which we are targeting in 2018. We look forward to updating our stakeholders on the progress of this transformational project in Mississippi,” said David Pummell, CEO of Velocys.
“The Mississippi Development Authority wishes Velocys continued success in their new venture in Natchez and Adams County. With its strategic location and close proximity to a major waterway, Natchez was a natural fit for this proposed capital investment of several hundred million dollars,” said Billy Klauser, chief economic development officer of the Mississippi Development Authority.