Abengoa plant may reopen

Staff writer

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More than two years after the Abengoa plant went off-line, Houston, Texas, based Natural Chem Group is looking to acquire the plant and resume operations.

Roosevelt County Community Development Corp. Director Stan Livengood said the company is looking to acquire the Abengoa plant as part of a plan to begin production of ethanol, biodiesel, liquid natural gas and compressed natural gas. He said Natural Chem executives are exploring the specifics of doing business in New Mexico with state agencies.

“All of the state agencies they’ve talked to seem to be behind the project,” Livengood said. “No one has said no, but that’s still not a yes.”

Livengood said the company has not secured the financing for the project, which Natural Chem estimates will cost about $105 million. He said it could be six months before the company secures financing.

Livengood said the Natural Chem project could bring an estimated 130 jobs to the county and will use local resources in the plants processes. The plant will use locally grown grain sorghum in the ethanol plant.

Natural Chem will also use natural gas from New Mexico Gas Company for CNG and LNG and corn oil brought in by rail to make biodiesel and glycerin.

Livengood said the company is looking to be produce a green alternative to standard fuels used by transportation fleets as national policy takes aim at reducing greenhouse gases.

“One thing this project is banking on is that fleets of trucks and buses will change to a new fuel type,” Livengood said.

Livengood said Natural Chem will start construction in phases and will be called the Eco-Fuels Complex. In phase one the company would purchase and restart the Abengoa plant, creating an estimated 40 jobs.

During phase two the biodiesel and glycerin refinery would be built on an additional 10 acres the company hopes to purchase in the Portales Industrial Park. The second phase would produce about 60 jobs.

The LNG and CNG plant would be built last during phase three and would create about 20 additional jobs.

Livengood said that at this point in Natural Chem’s talks nothing is certain, but said it is “65 percent to 75 percent likely” that the deal will go through after the company receives financing.

Livengood said Natural Chem CEO Robert Salazar was in Portales to discuss the project Nov. 18, and said that the fact they are still talking with local officials is a positive sign.

Salazar said the company has looked at starting their project in Idaho in addition to the Portales site. He said the resources at the Portales Industrial Park “fit nicely” with the needs of the company because the ethanol plant is complete.

Salazar said the ethanol plant in Idaho is 60-percent complete. He said discussions about the project have been easier in New Mexico than they have been in Idaho.

“What took six months in Idaho took six weeks in New Mexico,” Salazar said of negotiations with state agencies.

Salazar said he will be back in New Mexico in January for more “active discussion” with local agencies and financiers about moving forward with the proposed project.