Under the terms of a proposed development agreement, the
The cost of the unit is about
The agreement, which is under negotiation, would include clawbacks in the case Noble Americas does not create the expected number of jobs, Assistant Executive Director of Community Investment
Ownership of the unit would pass to Noble Americas at the end of the lease period, Fielding said.
"This was part of the method that we used to really attract Noble Americas to the plant," Fielding said. "So it's not something where we came in retroactively and said, 'Now that you've purchased it, we'll participate.' Our participation was promised upfront."
From a business standpoint, producing corn oil makes sense at the plant in that it makes the plant more sustainable and better able to withstand fluctuations in the ethanol market,
"Corn oil (is) very high value, and it can be sold for lots of different purposes," Punt said, including as cooking oil, as a key ingredient in some margarines and as a feedstock for biofuels.
Punt said he expects corn oil production to generate additional revenue of between
"There has been a tremendous amount of progress in the technology that's used to make ethanol ... over the last 10 to 15 years, so we say there's a lot of low-hanging fruit out at the ethanol plant," Punt said. "So that's some of the reason we've decided to invest more now before the start-up of the plant."
Punt said Noble Americas expects to restart the plant sometime in July. He said the company plans to hire between 50 and 65 people to work there at an average wage of about
Looking ahead, the company plans to invest another
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