A story in Thursday’s editions of The Oklahoman reported that Oklahoma Sustainable Energy LLC had withdrawn from a $100 million ethanol plant project in Blackwell because of problems obtaining financing by a Sept. 15 deadline.
Terry Detrick, company president, said that it would refund more than $8 million to investors, many of whom are Oklahoma farmers. He wrote an article for an American Farmers and Ranchers publication that used the headline “Wall Street Detours Oklahoma Ethanol.”
But others who reacted to the news weren’t heard in the story. Here are the reactions of David Fleischaker, Oklahoma Energy Secretary, and Shane Frye, executive director for the Blackwell Area Chamber of Commerce and Blackwell Industrial Authority. Plus, a final comment from Detrick:
“It’s sad but understandable. This is a very difficult time for new ethanol projects. The ones that are going to be successful in the near term are the ones that are built and have their construction costs behind them and are generating revenue from production of ethanol.“The ones that were late to the game, they faced increased costs in terms of plant construction costs and increased costs in terms of input costs, and at the same time there was downward (price) pressure on their product because there still are relatively few retail outlets. They are getting pinched at both ends and the results are road kill.”
— David Fleischaker, Oklahoma Energy Secretary
“Major projects all over the country are suffering right now due to the challenges in the investment banking world right now. And this is one of those projects. I know our community here in Blackwell is very committed (to the project). We are in weekly meetings with the folks involved with Oklahoma Ethanol and Chaparral Energy, and they are extremely committed to continue, as well. We are all in a holding pattern to get the clouds out of the way as far as the investment banking scenario right now.”Those folks (Oklahoma Sustainable Energy) were the folks who had the dream and the vision to get the project started, and we are going to continue working with them, and they are part of this deal wehtehr their investment continues or not. We’re proud they put this project forward.”
—Shane Frye, executive director for the Blackwell Area Chamber of Commerce and Blackwell Industrial Authority
“It was an honor to be in a position that we could kind of pull the trigger on the starting gun to introduce a whole new vision and dream and opportunity for Oklahoma,”
— Terry Detrick
Jim Stafford
Business Writer