Osage Bio Energy receives $300 million investment in barley ethanol strategy – winter crop doesn’t compete with food

In Virginia, Osage Bio Energy has received a $300 million investment commitment for its barley-based ethanol production plan. The company plans to construct four ethanol production plants in the Southeast, distributing fuel to the market through its sister company Osage. Texas-based First Reserve is providing the equity capital. The company’s plan uses barley, a low-input winter crop in the Southeast, as a feedstock.

Observers point out the higher production costs of barley ethanol and an indication from the USDA that its distillers grains may not be acceptable as livestock feed. The company has indicated that two sites in North Carolina are finalists for its construction plan. Planned overall capacity was not disclosed, but the company’s initial [plant in Hopewell, VA is slated for 55 Mgy.
Osage Bio Energy received the go-ahead from municipal officials in December for its Hopewell plant. Ethanol experts had said the proximity of the town to the proposed plant raises the potential of smell and the traffic from trucks bringing in feedstocks, and the vote had been rated a toss-up by observers.
At the time Osage received its green light, the Chesapeake City Council voted 7-2 to turn down a proposal for a 237 Mgy ethanol plant proposed by International Bio Energy. The plant was proposed for a site on the Elizabeth River which was opposed by local residents in surrounding neighborhoods. The residents had raised concerns about emissions, water usage, and traffic.

Free Subscription to the Daily Biofuels Digest e-newsletter

Related Stories

Osage Bio Energy to break ground on 65 Mgy ethanol plant, largest in US using barley as feedstock

In Virginia, Osage Bio Energy announced that it will break ground next month on its Appomattox Bio Energy plant, a 65 Mgy barley ethanol plnt that will be the largest in the US using barley as a feeds...

Osage Bio Energy receives final Virginia permit for 68 Mgy barley ethanol plant

In Virginia, Osage Bio Energy received its air permit from the Virginia Department of Environmental Quality, the final hurdle before commencing construction at its proposed 68 Mgy barley-based ethanol...

Osage Bioenergy partners with Perdue to source barley for 65 Mgy Virginia ethanol plant

In Virginia, Osage Bio Energy announced that it has partnered with Perdue AgriBusiness to obtain feedstock for its 65 Mgy barley ethanol plant in Hopewell. The company is seeking 28 million bushels of...

Osage Bio Energy to commence construction of barley ethanol plant in South Carolina

In South Carolina, Osage Bio Energy said that it would commence construction of its Congaree Bio Energy barley ethanol plant in Union County. Capacity for the $161 million project, one of four under d...

Lancaster Biofuels mulls feedstock switch from corn to barley

In Pennsylvania, executives at the proposed 60 Mgy Lancaster Biofuels ethanol plant said that they are examining a switch from corn to barley as a feedstock. The company, which includes Sir Richard Br...

Osage Bioenergy: 50 Hottest Companies in Bioenergy candidate profile

Osage Bioenergy Based in: Virginia 2008-09 rank: 40 Business: Barley ethanol producer Model: Owner-operator Past milestones: Osage Bio Energy (OBE) was formed in January 2007 to bui...