Alltech, Lexington, KY, receives approval from the Kentucky Economic Development Finance Authority (KEDFA) for financial incentives for its rural community biorefinery project, the first such model in North America that integrates feed, food and fuel production.

Caption: Alltech, Lexington, KY, receives approval from the Kentucky Economic Development Finance Authority (KEDFA) for financial incentives for its rural community biorefinery project, the first such model in North America that integrates feed, food and fuel production. The incentive is the first of its kind to be awarded by the Commonwealth.

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The incentive will total $8 million and will be based on a sales tax refund for building and equipment costs, a state income tax wage reduction for new employment and a credit against state income taxes.

In addition to the above funding and incentive plans, there is also a Department of Energy (DOE) grant application pending to further enable development in this exciting area which is expected to be announced in February 2008. Thereafter the project will get under way.

As part of the DOE proposal, Alltech's rural community biorefinery will be the first in the U.S. to utilize cellulose, such as switch grass, corn cobs and corn stover, at levels up to 30% of its raw material for conversion to ethanol and other value-added products. The facility, estimated to cost approximately $40 million, will be located in Springfield, KY, and is expected to employ 93 people when operating at full capacity.