Vireol Bio Energy Invests $26.2 Million In Hopewell, Virginia, Ethanol Facility
Peter McGenity, Chief Executive at Vireol Bio Energy LLC stated, “We’re delighted to announce that we will be starting production of renewable ethanol this month and we are looking forward to a long and successful future for Vireol in the Commonwealth of Virginia. We greatly appreciate the wide-ranging support from our US partners, including the Commonwealth of Virginia and the City of Hopewell. Governor Terry McAuliffe and the Commonwealth have recognized the potential of this opportunity and have provided us with the perfect springboard to launch into the US. Their support has been central to the decision to invest on the other side of the Atlantic.”
The company will improve the facility’s ethanol production capabilities as well as expand and construct new value-added processes at the site. One major co-produce byproduct of Vireol Bio Energy’s ethanol production are dried distiller grains, a high protein feed ingredient, sought out by poultry and livestock producers. The company is also investing in a facility to capture the high-quality carbon dioxide that is created during fermentation that is utilized for beverage carbonation and food preservation.
In addition to the investment and jobs created in Hopewell, Vireol Bio Energy will spend more than $100 million to purchase from Virginia producers approximately 21.7 million bushels of grains that the company will need over the next three years, providing new opportunities for Virginia’s farmers. Vireol Bio Energy plans to produce over 170 million gallons of ethanol over a three year period, utilizing corn, wheat and barley, which will ultimately be blended with gasoline for fuel.
The new state of the art plant will be the largest ethanol plant on the East Coast of the United States, Governor McAuliffe’s Office said. “In the first month of my administration, I was able to sit down with Vireol’s business and investment team to share with them my commitment to creating jobs and diversifying the Commonwealth’s economy and encourage them to begin their ethanol production here in Virginia,” McAuliffe said.
“Vireol’s decision to invest in Virginia rather than sending the plant’s assets overseas brings to life an impressive yet completely unutilized facility that will create good paying jobs right here in Virginia. It is outstanding that we are able to bring a new company like Vireol to Virginia by leveraging an existing asset and Virginia’s outstanding climate for business. As Vireol begins production, we’ll have new jobs in Hopewell as well as a new market in which Virginia farmers will be able to sell their grains,” he added.
As an incentive, a $250,000 AFID grant is being awarded to the City of Hopewell to assist the Vireol Bio Energy in the restart and expansion of the ethanol plant. Hopewell is providing a rebate of their local machinery and tool tax, an incentive offered to businesses in their Enterprise Zone, as the required local match for the grant. The company will also receive Virginia Jobs Investment Program employee training incentives, various state Enterprise Zone incentives and qualifies for the Biofuels Production Incentive Grant, recently passed by the General Assembly.
“The Vireol Bio Energy project creates good jobs at its facility while providing new opportunities for agricultural producers throughout Virginia, the very reason we created the AFID program two years ago,” said Todd Haymore, Virginia Secretary of Agriculture and Forestry. “Vireol’s commitment to source at least 30 percent of their grain needs from Virginia, as required by the AFID grant, creates a substantial opportunity for grain producers in our rural communities while also generating additional activity in our transportation and aggregation sectors. The byproducts from this facility, like the dried distiller grains, a much sought after component of animal feed, also provide new domestic usage and export opportunities for Virginia.”
2023's Leading Metro Locations: Hotspots of Economic Growth
The Logistics Analysis That Drives Industrial Site Selection
2023 Top States for Doing Business Meet the Needs of Site Selectors
Technology’s Influence on Workforce Development
Workforce Q4 2023
AI 101 for Site Selection
First Person: Realizing the Inflation Reduction Act’s Full Potential
2023 Top States Commentary: Top-Ranked States Have What It Takes to Win Mega Projects