Apr. 9--SEBRING -- Despite reports of economic problems in the corn-based ethanol industry, plans for a biofuels plant processing sweet sorghum in Highlands County remain on track, according to a company spokesman.

"Our early stage financing is going well, and we have multiple opportunities to finance the whole project," said Brad Krohn, president of Highlands EnviroFuels LLC.

The company plans to raise between $60 million to $70 million to build an advanced biofuels plant at U.S. 27 and State Road 70, which would produce 20 million gallons of ethanol per year from sweet sorghum.

Design of the plant will allow it to expand production to 40 million gallons per year.

Several Highlands County growers have joined the project as investors, Krohn said.

"It's not moving as fast as we wanted, but we still are on course, the project is moving forward," he said.

"We're still planning on breaking ground in the first half of next year, and to be in production in early 2011," Krohn added.

According to news reports, the global recession, a rise in corn prices and the drop in gasoline prices are putting the nation's 180 ethanol plants into a tough financial situation.

"It's a tough market if you are making ethanol from corn, because corn prices are high and it's squeezing the margins for ethanol plants" Krohn said.

"But in our case," he added, "we're not using corn. Sweet sorghum is our primary feed-stock and sweet sorghum is not linked to food use."

Massachusetts based Verenium Corporation and British Petroleum (BP) have formed a partnership to build a cellulosic biofuels plant in Highlands County, on 95 acres owned by Lykes Brothers off State Road 70 east of US 27.

Verenium officials could not be reached for comment.

Because sweet sorghum produces a sugar-based ethanol, Krohn said, Highlands EnviroFuels is confident it can secure federal stimulus aid for its Highlands County project.

"Our project will qualify as advanced biofuels, in which we're not using corn as a feed stock and it will reduce greenhouse gas emissions by more than 50 percent," Krohn said. As a result, he said, "our project should qualify for certain programs coming from the Obama stimulus package."

Highlands Today reporter Jim Konkoly can be reached at 863-386-5855 or jkonkoly@highlandstoday.com

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