COLLINWOOD, Tenn. - A Hawaiian-based company is partnering with Hughes Hardwood, of Collinwood, to build a $200 million biorefinery in Wayne County, officials said.
The refinery, which will convert wood products into renewable diesel or jet fuel, will create about 50 jobs, officials said.
Gov. Phil Bredesen joined ClearFuels Technology Inc., and Hughes Hardwood officials to make the announcement.
The refinery will be built at the Hughes Hardwood site, which is on Tennessee 13 in Collinwood.
"Tennessee's nationally recognized business climate and our demonstrated commitment to the clean energy industry create fertile ground for partnerships like this one between ClearFuels and Hughes Hardwood," Bredesen stated in a news release. "Alternative fuels are a pillar of Tennessee's green portfolio, and the investment in Collinwood is an affirmation of our state's important role in the continued growth of this emerging sector."
Construction of the plant is supposed to get under way in 2011, with the facility beginning operations by late 2013 or early 2014.
"The construction project itself will be about two years from breaking ground to operational," said Warren Davis, vice president of commercial development for ClearFuels.
He said the company will convert 1,000 tons a day of leftover wood products into 1,200-1,500 barrels of jet fuel or diesel fuel a day.
Tom Cauley, director of economic development for Wayne County, said this project has been on going for about 20 months.
"(ClearFuels) was looking at a huge area and I kept trying to get them to look at Wayne County," Cauley said.
He said the company was offered land in the Wayne County Industrial Park, which is between Waynesboro and Collinwood.
"We finally got them here and they were looking for someone to co-partner with," Cauley said. "I put them together with officials from Hughes Hardwood and it was a perfect match."
Parkes Hughes, senior vice president of Hughes Hardwood, said ClearFuels will be using some of the existing buildings at the Collinwood location as well as building the refinery.
Hughes Hardwood is a 70-year-old company that once operated a saw mill in Collinwood. Hughes said the company now buys green timber, dries in and then sells it to saw mills.
He said in this new venture, the company, which has 33 employees, will be buying wood fiber from a lot of different sources to be turned into fuel.
According to ClearFuels officials, the conversion technologies have been in development, tested and improved upon for 15 years getting to the point where the company is ready for commercial production.
Davis said the process is being operated in a smaller scale at a facility in Colorado.
Bill Hughes, president of Hughes Hardwood, said his company is pleased to play an integral part in the implementation of a biorefinery in Wayne County.
He said once the refinery is operational, it should benefit the timber industry in a multi-county area.
"We're talking 50 jobs at the refinery, but when you consider all of the side products, it could be hundreds of jobs," said Wayne County Executive Jason Rich. "We're thankful that the refinery is going to be located in Collinwood, but it's going to have an impact on the entire region."
Rich said the refinery will need employees with backgrounds in high skilled maintenance, chemical engineering and product manufacturing. He said wages and benefits have not been mentioned.
"We really don't know what this will mean to the area's economy right now, but the end results can only mean good things.
"This could be a real shot in the arm for Wayne County and the potential for constant growth."
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