A major partner in a proposed Blackwell ethanol plant has dropped out of the project and plans to refund more than $8 million to investors.
In a letter to investors dated Sept. 16, Terry Detrick, president and chairman of Oklahoma Sustainable Energy LLC, wrote: "It comes as no surprise that Wall Street is currently in a weakened condition and funding for new large projects is at a standstill. ... The timing just hasn’t been right.”
Advertisement
Many of the Oklahoma Sustainable Energy investors were Oklahoma farmers who invested a minimum of $10,000 each in the project.
Detrick, vice president of the American Farmers and Ranchers, helped organize the project in 2002.
Chaparral Energy joined the project as a partner and an Enid site was selected to build a $100 million, corn-based ethanol plant. When it became clear that the infrastructure needed for the plant could not be provided by the city of Enid, a new location was found near Blackwell.
"Our vision from the beginning was for this to be an Oklahoma project,” Detrick said. "There was an agreement between the Oklahoma Department of Securities and Oklahoma Sustainable Energy that if a suitable financial agreement had not been reached by Sept. 15, 2008, the investors money would be returned with interest.”
Detrick said he still hoped that the project can be completed by a Chaparral Energy subsidiary, Chaparral Biofuels LLC. Chaparral spokesman John Kilgallon said that the company intends to make the plant a reality.
"However, given the current situation in the capital markets, the ability to secure proper financing has been very challenging,” Kilgallon said.
Thank you for joining our conversations on NewsOK.com. We encourage your discussions but ask that you stay within the bounds of our terms and conditions. Please help us by reporting comments that violate these guidelines. To review our rules of engagement, go to Commenting and posting policy.
Editor's note: It is not our intent to offer comments on crime or fatality stories.
Leave a comment.
Log in below or sign up (it's free).
I assume that it's Chaparral Energy that dropped out, although it isn't clear from the story. They are mentioned in the 5th paragraph, I guess they are the "key partner" mentioned in the headline.
Let the state legislature cough up the money. If they can come up with 60 million in tax breaks for a bassa'ball team,(bringing almost all employees thus far in from out of state) they can come up with the money for this, something that will benefit all(and will probably employ current Okie residents, which is what the program is designed for in the first place). Oh wait, the state doesn't have any money...........
2
Thank you for joining our conversations on NewsOK.com. We encourage your discussions but ask that you stay within the bounds of our terms and conditions. Please help us by reporting comments that violate these guidelines. To review our rules of engagement, go to Commenting and posting policy.
Leave a comment. Log in below or sign up (it's free).Editor's note: It is not our intent to offer comments on crime or fatality stories.