Various concerns have been raised about the inpact upon Ravenna as the construction process begins this Spring:

Over the course of the one year construction period, there will likely be hundreds of people involved in that process, but they will not all be on-site at the same time. A good number of the construction workers may actually come from the Buffalo County area as sub-contractors or temporary laborers. Consequently, many will be commuting to the work site from nearby homes. Others who relocate temporarily specifically for this project may seek motels or rental housing in Ravenna or surrounding communities like Kearney or Gibbon. Others may actually take up permanent residence in Ravenna. The increased activity related to construction of the plant should present welcome opportunities to existing businesses and local entrepreneurs but should not cause unmanageable stress to the community.

The plant will have equipment available to dry the wet material for shipment to other, more distant markets.  With this capability the plant will be able to adjust its output to market demand. 

After this question was raised earlier in the process, Nordic biofuels representatives discovered that their first filings had been done incorrectly.  The papers have been refiled and Nordic biofuels will operate as a legal nebraska entity.

Nordic biofuels of Nebraska, LLC is a newly formed corporation specifically for this project and potentially others in Nebraska.

The CDBG grant will be coordinated through the Nebraska Department of Economic Development and its field service staff.  The Economic Development Council of Buffalo County will assist the City of ravenna and Nordic biofuels to make a formal applications for the grant when the project is further along in its development timeline, probably in late July or early August.  It is likely that the grant amount will be for $500,000.

The CDBG process typically takes 90 to 120 days for approval.  Public hearings will be a part of that process.  The company under the supervision of and with the assistance of DED prepares an application.  After the application is reviewed and all the attendant supporting documentation and requirements has been completed the governor also reviews the project and approves the grant.

Each grant application is specific to the project applying for it so details regarding this project are not yet fully developed.  In the case of economic development CDBG grants, the city acts as a pass through to the project.  In other words, the funds are granted to the city with no requirement for repayment to the state and then either loaned or granted to the project.

The grant documents have not yet been prepared.  The terms of the grant/loan will be negotiated with the company sometime in July.

The decision regarding specific uses for the CDBG funds will be identified sometime in July.

As is the case with most corporations Nordic biofuels has a policy that it does not discuss personnel issues.

Ravenna is the beneficiary of the company's shift of emphasis from Washington to Nebraska.  Because of this region's superior competitive environment, the company is focusing its first plant development here where it is more economical to construct their first facility.  The referenced reports regarding the company's financing strategy are uninformed speculation.

Nordic has a successful history of developing, building and operating power plants.  The Ravenna facility will be the first ethanol production facility constructed by Nordic biofuels, LLC. 

Nordic is considering a variety of other future opportunities but it is premature to publicly discuss things that may be in development.

Nordic biofuels intends to provide as much information about their proposed ethanol plant to the public as is possible and reasonable.  Naturally, a a large project like this generates a great deal of public interest which the company has earnestly attempted to address through its participation in community forums, numerous development meetings, and through its partners at the Ravenna Economic Development Corporation and the Development Council.

Nordic biofuels of Nebraska, LLC is part of the Nordic Energy Group, LLC  which is headed by Mr. John Baardson.  Mr. Baardson has visited Ravenna to meet with the community, and his associates are actively engaged in the monumental task of designing, financing and building a $97 million state of the art ethanol production facility.  The Ravenna project has taken precedence over all other ethanol sites that had been previously considered by the company.

Members of the State Department of Economic Development, the Economic Development council of Buffalo County, the Ravenna Economic Development Corporation, NPPD, and others have met with the company and its financing partners to review the project financing plan.  The project will be privately financed with a combination of equity and debt financing in a package developed by the company.  Naturally, much of the information associated with Nordic's financing plan must remain confidential, just as it is for any other privately owned business, including producers or Ravenna main street businesses.

The company will continue to provide updates about the plants progress as they are appropriate, however in the term Nordic biofuels of Nebraska, LLC will be focusing its energy primarily on the tasks necessary to ensure the project's success.  With a functioning 80 million gallon per year ethanol plant, both Nordic biofuels and the Ravenna area will be winners.

There may be as many as 200 trucks making deliveries or off-loading product from the plant every day.  Many of the trucks will be coming from the east or west along Highway 2 as  well as some from the south which will use Navaho Road as their main access to the plant.  However, some trucks coming from the north may be required to use Highway 68 as its route to the plant.  Although fewer in number, there will be some increase in truck traffic on Grand Avenue.  In addition to the road improvements planned for Navaho Road, there has been some discussion about creating a north by-pass to accommodate non local traffic.

Every bushel of input corn to the Nordic biofuels plant will come three products in roughly equal amounts - ethanol, wet distillers grain and CO2.  The amount of wet grain by-product that is delivered to market in wet form will actually be determined by market demand.  Some may be dried for shipment to more distant locations depending upon market conditions.

The project was made public as soon as the company and the local development team had completed preliminary market evaluations that indicated a strong level of likelihood that the project could be successful. 

Members of the community development team have been working on the project since the middle of March. That team was restricted during the early, exploratory part of the process to Dale Pohlman, Dale Johnson, and Gerald Reimers in addition to Ron Tillery. The council first heard of the project in detail at the community information meeting on May 13th, there was no closed session. 

The first official action conducted by the city council in regards to the project was at the specially scheduled meeting on May 20th. There will be a variety of official city actions required in the future in addition to many activities conducted by the chamber, economic development group, and other community based organizations. Everything will be done with considerable community involvement and the overall best interests of Ravenna at the forefront. 

The pace of the project is dictated by construction schedules, environmental permitting processes, local annexation and zoning requirements, and the state operations deadlines to qualify for ethanol production credits. 

Residents outside the community have been welcome at the community information meeting and the city council meeting that have been conducted to date. They will have opportunities to voice their opinions in future official and informal public meetings. 

Economic development that is consistent with Ravenna's heritage and resource base will help preserve the community's future viability and enable it to remain a Hometown Hideaway for future generations. 

The Development Council, the Ravenna Economic Development Corporation and Nordic Energy will welcome an opportunity to have a reasoned, honest dialog with any citizen or citizens group with the goal of providing and receiving factual information.

Nordic biofuels has made no "demands" on the community or the city council, rather it has offered an opportunity that community representatives believed would be attractive and which they have agreed to fully research. They have agreed to work with the company to resolve development issues so long as it remains an attractive partnership to both parties. The entire predevelopment process will occur over the next four to five months giving citizens of Ravenna ample time to fully understand the potential impacts of the project.

The web site referenced is hosted by a small group of environmental advocates who oppose this project and is not necessarily representative of the entire community. Additionally, there is no connection between these two projects and any comparisons would be like comparing apples to oranges. 

Plant investment is now an estimate. The total project investment could be in the range of $97 million with construction costs in the range of $85 million. Although significant portions of specialized equipment will be fabricated elsewhere, there will be abundant opportunities for local contractors to participate in the construction of this project. Ranging from site work and paving to building construction, utilities, and roofing there are dozens of potential local contracts worth millions. 

Nordic biofuels of Nebraska LLC and its investors will share in the risk and the profits generated by the plant's operation. The largest single input cost to the plant is for corn - about $70 million - which will be paid to local producers. 

Trucking opportunities will be created for both local and regional operations. 

The plant will purchase about $70 million worth of grain from farmers, large and small, or other sources in the area. 

Nordic biofuels believes that it will consume somewhat more than 30 million bushels of corn per year. Over 300 million bushels are produced within a 50 mile radius of the proposed plan. The plant believes it will be able to contract for adequate supplies of grain without extending beyond a 50 mile radius of Ravenna, but Nordic intends to buy grain in as close of proximity to the plant as possible to avoid possible transportation costs. 

The Ravenna corn basis has been consistently lower than many of the surrounding markets. While the plant will attempt to contract for grain at rates that allow it to be profitable, Nordic recognizes that local corn prices tend to increase by a nickel or more when an ethanol plant is built and they have factored that into their business pro forma. 

Nordic has selected Ravenna in part because of the surplus corn supply in the market. It is their intention to purchase all of the corn for the ethanol plant locally. Nordic is also considering a corn load out facility that would enable them to purchase additional corn for its other planned facilities in the Pacific Northwest. 

Nordic will work with farmers directly or with grain elevators in order to ensure timely and cost effective delivery of grain. 

Nordic will address the questions of corn moisture discounts in the future.

Neither Nordic nor The Development Council is aware of any relocation or sales plans involving the existing Cargill operation. 

We are unfamiliar with specific plans for a new truck stop. It is possible that this or other new businesses may occur based upon individual assessments of the market's potential. 

Neither Dawson Public Power nor NPPD have indicated that the new loads created by this plant would lead to residential or commercial rate increases or any other adverse affects on the community. In fact, there will be new infrastructure built to support this facility that could lead to greater local reliability. 

Again, there is no correlation between this plant and local gas rates. 

The county tax assessor will review the project at a future date. Initial estimates from that office indicate that the company should plan on a real property assessment of approximately 50% of the constructed value. 

It is important that contracts between the City of Ravenna and Nordic biofuels have transferability clauses in order to protect taxpayer's interests. 

See above. 

Non farm residents will benefit from having further diversification of the economic structure of Ravenna. New jobs and potential new businesses or business expansion are likely results from this endeavor. The city's tax base will be expanded along with that of the local schools and the county adding strength to their respective balance sheets. As more than $2 million of local payroll ripples through the economy, Ravenna will become a more attractive community for other forms of investment not to mention its increased appeal to new families. Nordic biofuels has said they intend to become an active corporate citizen supporting community events, activities, and schools.

It is too soon to say how many existing residents will be employed at the plant, or how many new employees will move to the Ravenna area. The company says it intends to offer most of the 48 new jobs to people locally with a handful going to people with specialized backgrounds. Nordic will have a policy that requires some key employees to reside within the greater Ravenna area. A combination of resident employees and commuter employees is likely, but it is not possible to provide precise estimates, now. 

The average wage for all plant employees will be about $40,000 per year excluding benefits. Nordic projects approximately 24 production workers at $35,000 and 8 maintenance workers at $40,000 per year. Rounding out the employment matrix will be 6 supervisors, 5 office/clerical, and 3 managers.

The plant should not have any adverse effect on the Ravenna Lake.

Nordic biofuels will be investing roughly $100 million to build the Ravenna plant. As partners with the company, the City of Ravenna, Buffalo County, and the state of Nebraska will provide administrative, technical and financial assistance, but the company assumes the predominant role for development. It is likely that the City of Ravenna will assist Nordic biofuels by redirecting some of the property taxes generated by the project back to qualifying uses such as land acquisition, site work, paving, etc. The precise amount of Tax Increment Financing available to the project will be determined later, after Nordic makes an official application through the Ravenna Community Redevelopment Corporation. The company will also apply to the state of Nebraska for a Community Development Block Grant, a process that will begin soon and will also provide several opportunities for public comment. Buffalo County has indicated a willingness to consider paving Navaho road from Highway 2 north to the project site, approximately 1.75 miles. The county would recover these costs through increased property tax revenues to the county over time. 

The plant's wastewater treatment system is in the design process. Ravenna's city engineer and the company's engineering firm will collaborate to ensure a compatible system. The plant is 1.9 miles east of the city limits providing a significant buffer between it and other development and also strategically located to take advantage of rail access and other transportation infrastructure. 

Other communities that have developed modern ethanol facilities report no significant adverse effects that limit economic development or quality of life. In fact, the reverse seems to be true. Spin off opportunities have been the result leading to improved quality of life and additional investments. 

An economic impact report has been commission through NPPD economists that will address this area. 

Before the plant can be constructed, Nordic Biofuels must complete, at its expense, all of the environmental permitting requirements of the state of Nebraska.  The most significant permitting activity will be securing an air permit for the facility.  This work will require the emissions from the project to be computer modeled to assure pollutant concentrations are below Nebraska Department of Environmental Quality ("NDEQ") significant impact level thresholds.  Additionally, the equipment for the plant must meet Best Available Control Technology requirements of NDEQ in minimizing the discharge of pollutants from the facility.  The planned wastewater discharge from the plant must also be reviewed and approved by NDEQ.

At this writing we are aware that the mayor and at least one other council member have visited the Aurora ethanol production facility. The Development Council and Nordic biofuels are currently exploring an additional trip(s) that will provide greater first-hand experience with similar operations. Not all ethanol plants are alike. It is important to visit plants that employ similar technology. 

It is our understanding that some council members have visited with plant neighbors. Additional visits will be planned.

It is not feasible to consider other sites for the Ravenna plant at this time. 

Nordic biofuels estimates that as many as 200 plant related trucks per day could be traveling area roads. These incoming and outgoing shipments could be oriented in a variety of directions, not all traveling through Ravenna proper. Nevertheless, it will be important for the community to plan for additional truck traffic and to make the necessary adjustments, if any, to ensure safety and good traffic flow. Additional revenues from the project's property taxes, franchise fees, use fees, and other sources could be directed to those issues.

Nordic biofuels and Ravenna are jointly reviewing the sewerage system questions and will make a future judgment regarding design requirements and a rate structure necessary to finance any identified upgrades. 

The company will answer the thermal oxidizer question. 

The company will answer plant operation question. 

The plant will be permitted by the state of Nebraska, which has policies and procedures for complaints. 

The plant will be designed and constructed to be a good neighbor to the community and it's surrounding residents. Like any agricultural, industrial or commercial activity - for example: BNSF, Leprino Cheese, or automotive and equipment dealerships - there will be impacts beyond its borders, and it will be among Nordic biofuels goals to ensure that the positive impacts far outweigh the negative. 

There are a number of sources for factual information about ethanol and ethanol production. Please refer to the following organizations, publications or web sites, among others, for reliable data: The Ethanol Fact Book, and the Oxygenates Fact Book, both from The Clean Fuels Coalition, The Nebraska Ethanol Board, Todd Sneller, Administrator. Reprints from some of these publications will be made available at locations in the community. Frequently, media or other well-meaning individuals may rely on out-dated or out-of-context material that does not apply to this project.

• http://www.ethanol.org
• http://www.ne-ethanol.org
• http://www.cleanfuelsdc.org

Nordic biofuels will comply with Nebraska's monitoring requirements. 

• Letter of Support from Mayor of Blair
• Estimated Economic Effects for the Nordic biofuels Ethanol Plant in Ravenna, Nebraska (Requires Adobe Acrobat Reader)