7:30 AM, Oct 22, 2012
Sundrop Fuels Inc. has hired some plant managers and has started
preliminary site work north of Alexandria, where construction on the
company's $450 million synthetic gasoline plant is to begin early next
year with completion in 2014.
The Colorado company, which chose Central Louisiana for its first commercial plant, continues financing negotiations with lenders. They're getting ready for robust activity on land the company bought near Cowboy Town, a closed entertainment venue in Rapides Station.
"2013 is going to be very busy," company spokesman Steven Silvers said.
Silvers said training for entry-level and other positions, to be done through the Louisiana Workforce Commission, should begin in late 2013. He said the training depends on the progress of construction.
Not quite one year ago, Louisiana Economic Development chief Stephen Moret and local economic development officials announced that Sundrop Fuels would locate its biofuels plant at a site off Interstate 49 north of Alexandria.
The company plans to use natural gas from a pipeline not far away, the woody biomass that is in abundance in Central Louisiana, and a whole lot of technology using heat and chemical interaction to produce car-ready synthetic gasoline.
The project is proceeding on schedule, Silver said.
To lure Sundrop, Louisiana offered incentives based on the jobs created:
Performance-based grants of $14 million over 10 years for building and financing costs.
$4.5 million for relocation costs of research and development operations and personnel to Louisiana.
Tax breaks.
Access
to private activity bonds, which is a federal government program that
allows companies to borrow money at lower interest rates.
To get the incentives, Sundrop agreed to locate in Rapides Parish, create 75 jobs before the end of 2013, and 150 by the end of 2014, according to information provided by LED last week.
The company also has until the end of 2014 to complete its investment of $450 million.
Some managers have been hired, including some who now live in or near Alexandria, Silvers said.
The company is advertising several high-level positions on its website at www.sundropfuels.com including site supervisor and plant managers.
State training for ground-level plant jobs could begin in late 2013.
"LED FastStart will be engaged with the Sundrop Fuels team to help recruit, train and certify a qualified workforce to staff the company's state-of-the-art biofuels refinery," said Jeff Lynn, executive director of workforce development at LED.
"As the ramp-up date for hiring approaches, we'll provide more information to the public about recruitment, and training will be available at a later date," Lynn said.
Sundrop's partner, Chesapeake Energy, has pledged to pay $155 million for a 50 percent equity stake in Sundrop. Chesapeake said in its latest quarterly report that so far it had paid $65 million of the total, which it is giving to Sundrop in "tranches."
Chesapeake Energy has had cash and governance troubles, and its CEO Aubrey McClendon has been on the ropes. Activist investors are seeking more influence in the company, which is second only to ExxonMobil in production of natural gas.
Silvers said Chesapeake remains committed to Sundrop, and it'll be Chesapeake's natural gas that provides the fuel for heat needed to produce synthetic gasoline.
Silvers said the price Sundrop will pay for natural gas, a regional commodity that has fetched low prices the last year, will be a product of negotiations between the two partners.
"Those are things that are still being worked out," he said. "They are a partner with a vested interest in seeing Sundrop Fuel succeed as an alternative fuels company."
The Colorado company, which chose Central Louisiana for its first commercial plant, continues financing negotiations with lenders. They're getting ready for robust activity on land the company bought near Cowboy Town, a closed entertainment venue in Rapides Station.
"2013 is going to be very busy," company spokesman Steven Silvers said.
Silvers said training for entry-level and other positions, to be done through the Louisiana Workforce Commission, should begin in late 2013. He said the training depends on the progress of construction.
Not quite one year ago, Louisiana Economic Development chief Stephen Moret and local economic development officials announced that Sundrop Fuels would locate its biofuels plant at a site off Interstate 49 north of Alexandria.
The company plans to use natural gas from a pipeline not far away, the woody biomass that is in abundance in Central Louisiana, and a whole lot of technology using heat and chemical interaction to produce car-ready synthetic gasoline.
The project is proceeding on schedule, Silver said.
To lure Sundrop, Louisiana offered incentives based on the jobs created:
To get the incentives, Sundrop agreed to locate in Rapides Parish, create 75 jobs before the end of 2013, and 150 by the end of 2014, according to information provided by LED last week.
The company also has until the end of 2014 to complete its investment of $450 million.
Some managers have been hired, including some who now live in or near Alexandria, Silvers said.
The company is advertising several high-level positions on its website at www.sundropfuels.com including site supervisor and plant managers.
State training for ground-level plant jobs could begin in late 2013.
"LED FastStart will be engaged with the Sundrop Fuels team to help recruit, train and certify a qualified workforce to staff the company's state-of-the-art biofuels refinery," said Jeff Lynn, executive director of workforce development at LED.
"As the ramp-up date for hiring approaches, we'll provide more information to the public about recruitment, and training will be available at a later date," Lynn said.
Sundrop's partner, Chesapeake Energy, has pledged to pay $155 million for a 50 percent equity stake in Sundrop. Chesapeake said in its latest quarterly report that so far it had paid $65 million of the total, which it is giving to Sundrop in "tranches."
Chesapeake Energy has had cash and governance troubles, and its CEO Aubrey McClendon has been on the ropes. Activist investors are seeking more influence in the company, which is second only to ExxonMobil in production of natural gas.
Silvers said Chesapeake remains committed to Sundrop, and it'll be Chesapeake's natural gas that provides the fuel for heat needed to produce synthetic gasoline.
Silvers said the price Sundrop will pay for natural gas, a regional commodity that has fetched low prices the last year, will be a product of negotiations between the two partners.
"Those are things that are still being worked out," he said. "They are a partner with a vested interest in seeing Sundrop Fuel succeed as an alternative fuels company."
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