FeedsBiodiesel refinery decision is delayed
Concerns about a by-product created during the formulation of biodiesel fuel caused Romulus City Council members to delay approving a proposed refinery.
The by-product, which is created from fat trucked into the refinery, will be disposed of safely and does not constitute grounds for denying the application of Alternegy to move onto a small parcel of land in the city, said Councilman William Wadsworth.
“I’m not an expert at this, but apparently there is a by-product that is created when this stuff is refined, and some of the council members had questions about how it’s going to be disposed of. I think we were able to get an answer about this, and I do think the project will be approved at the next council meeting,” he said.
Tim Keyes, the economic development director, also believes the project is a go.
“(Alternegy) has all of their paperwork in order and support from the state and county,” he said. “Once these few questions are resolved, I think it will move forward.”
Biodiesel is a clean burning alternative fuel, produced from a variety of fats and oil. It is a renewable fuel that is often touted as one of the solutions to weaning U.S. consumers from foreign oil dependence.
Though biodiesel contains no petroleum, it can be blended at any level with petroleum to create a “blend” that can be used in typical compression-ignition diesel without any engine modification.
Feedstock and other materials are generally brought in by rail, which made the Romulus site attractive because of the proximity to the railroad tracks, officials said last month.
Alternegy, which has partnered with longtime Romulus business RKA Petroleum, first approached the city in April to hammer out a deal for the facility. According to estimates, the facility will cost about $14 million to construct.
If it comes to fruition, the biodiesel facility proposed in Romulus would refine 10-11 million gallons of biodiesel per year, according to sources familiar with the project.
RKA is also considering building a new headquarters in the city.
Initially, some council members were concerned about the small parcel at Middlebelt and Wick roads where the facility would be located. The concerns were primarily the amount of materials and the number of trucks that would come through the heavily-traveled intersection, which is one of the busiest in the city.
Council members also approved a 10-year tax abatement for the project. Alternegy had requested a 12-year tax abatement, and a three-year phase after that, in which taxes would have been paid in 25 percent increments until the full amount is assessed.
Alternegy representatives have also applied for Renaissance Zone status with Wayne County, which will ensure another set of financial breaks for the firm.
The push to create and use alternative fuel sources is touted by everyone from car manufacturers to President George W. Bush. Wadsworth said everyone on council thinks its important, even if some council members continue to ask questions.
“There’s not anyone up there who doesn’t think biodiesel is important,” he said. “In the long run it’s going to be a good project for us.”
The development will also bring jobs to the city.
“They’re going to bring 30 jobs with them, and we could use them at this point,” Wadsworth said. “We still have quite a few residents that are looking for work.”
