06.18.03

Cantwell Brokers Deal Paving Way for Ethanol Plant Construction, Job Creation in Washington

WASHINGTON, D.C. - U.S. Senator Maria Cantwell announced today that she successfully brokered an agreement involving the Central Washington Building and Construction Trades Council, Pacific Rim Ethanol, and Lurgi-PSI, which could create as many as 350 jobs.

"We have cleared a major hurdle in making the ethanol plant a reality for Moses Lake. I am very pleased the Central Washington Building and Construction Trades, Pacific Rim Ethanol and Lurgi have come together on the construction of the Ethanol Plant in Moses Lake," Cantwell said. "This project will open a new market for Washington's wheat and barley growers, provide much needed economic development in Central and Eastern Washington and help reduce our reliance on fossil fuels. Bringing new jobs to the region is a victory for everyone."

At the suggestion of Governor Gary Locke, former Governor Mike Lowry has agreed to review bids that are submitted for the various projects involved in constructing the plant.

"I want to thank Governor Lowry for continuing his service to the State of Washington," Cantwell said. "All of the parties trust Governor Lowry and respect his willingness to be involved in overseeing the bidding process."

Once operating, the 40 million-gallon-plant will be the first of its kind in North America to produce ethanol mainly from wheat and barley while also providing vital wheat gluten. The plant will also have the capability to process corn, which is traditionally used in producing ethanol. In the past, ethanol production has declined by as much as 18 percent when corn prices have risen. The plant's ability to produce ethanol from wheat and barley will help stabilize ethanol production and open a new market for wheat and barley growers.

"This is a major step forward for us and Pacific Rim Ethanol is excited to take the necessary steps to begin construction," Doug Mackenzie, President and CEO of Pacific Rim Ethanol, said. "Senator Cantwell helped make this happen and we are happy to be partnering with the Central Washington Building and Construction Trades Council on this one of a kind project."

The agreement assures that qualified contractors, union or otherwise, can bid on the project and local firms will be considered first. All jobs related to construction of the ethanol plant will be compensated according to Washington state prevailing wage rates for Grant County. Construction of the plant is anticipated to begin in the late summer or fall and is expected to last two years.

Last week, Senator Cantwell amended the Senate Energy Bill to include incentives to encourage the production of ethanol from wheat straw and other agricultural byproducts common in Washington and other non-corn producing states. Prior to Cantwell's amendment, the original provision only applied to corn, which would not have opened up this new market for wheat and barley growers.

"My ultimate goal was to ensure that we took every opportunity to create local family wage jobs while ensuring the protection of the community, workers, and the environment," Rick Bergland, President of the Central Washington Building and Construction Trades Council, said. "We are excited about this agreement and have a number of contractors anxious to bid on the related work."

According to studies, including an analysis conducted by the Department of Energy's Argonne National Lab, a gallon of ethanol produced from cellulosic biomass will represent a greenhouse emissions reduction of around 85 percent to 130 percent—about seven times the air quality benefits of starch or corn-based ethanol.