Although established in Europe and China, the production of butanol is a fledgling industry in the U.S., explained Dean Sedgwick, president of Itasca Power. The biofuel has significant advantages over ethanol with a much higher energy value and compatibility with even older cars on the road today. Although the market for the product is just beginning in the U.S., he said, large companies like BP Amoco have recently announced their intentions to develop butanol in this country. The new plant would be at the leading edge of the domestic industry.

Sedgwick asked the council for a letter of committed support. After a recent experience in Northome where a multi-year effort to develop an electric plant was stopped on the eve of construction by a reversal of city council support, Sedgwick said that Itasca Power would only move forward in Effie if there was a committed interest to follow through.

If permitting and development activities proceeded in a timely fashion the project could break ground in 2008 with a two year construction period, Sedgwick said.

Sedgwick summarized the advantages and concerns to consider with the proposed project for the council and answered questions. The project would provide about 40 construction jobs and about 30 long term onsite jobs with additional employment in the forest and trucking industries.

Some questions included use of the aquifer, onsite storage and possible fallout from controversy over the Excelsior project. Contrary to an ethanol plant, Sedgwick explained, the aspen wood feedstock for butanol contains enough water that, with proper design, the plant could use little if any outside process water. Part of the development activities, he said, would include an infrastructure review including soils and aquifer characteristics. The goal would be to achieve a minimal water discharge or requirement and this would become part of the permitting process.

Onsite storage would be required for 2-3 days of product or up to 50,000 gallons. The plant would have a safety program and design as part of its insurance requirements.

It is very important, said Sedgwick, to have proactive participation from the community and buy-in from local residents, and to address their concerns at the outset. Although this is a very different project than the large coal-fired power plant proposed by Excelsior, the need remains to keep the community in the process.

Itasca Power is a Minnesota based project development company operating in the utility industry for over 10 years. The company has been part of project management for energy and ethanol projects in Illinois, Indiana, Massachusetts, North Dakota, Kansas, California and Canada.