FALLS CITY-  Economic developers told the county board Wednesday that even if Nebraska’s BioEconomy Initiative ambitions for a  bio-chemical project in Falls City survive a freeze in the federal loan program under President Trump, the clock is ticking at the Mid-America Rail Campus where electrical demand would be 10 times greater than what Falls City already uses.

Lucas Froeschl of Falls City EDGE said  the timeline is imperative to biochemical manufacturer Citroniq Chemicals and a challenge to energy providers.

It’s possible for Falls City to squeeze another 1 to 2 megawatts of electricity out of an existing transmission line from the Omaha Public Power District, but the three-plant concept offered to the federal loan program could require 140 megawatts.

The state Legislature earlier approved $15 million for a new  electrical transmission line to Falls City, but Froeschl said construction could take years longer than the project can endure.

Froeschl: “So one thing that is super clear is we have to do some sort of on-site generation.”

 Development site south of Falls City

He said renewable natural gas is a possible solution for a new power plant, but the site's existing 500 psi pipeline may only provide enough natural gas to get the first production facility started. He said Southern Star Central Gas has a 1,300 psi pipeline, but it is located 18 miles away.

Falls City City Administrator Anthony Nussbaum said Falls City’s 2,000 electric customers can not bear the financial risk of a new power plant and new pipeline. He told county commissioners the city is entering non-disclosure agreements with entities that may provide energy solutions for the Citroniq project.

Froeschl said there are seven entities who have reached out.

Froeschl: “What we know is there’s a ton of different options, paths that we can go down to try and meet this need, but the bad thing is there’s not one clear path.”

Froeschl explained that Citroniq had originally considered one manufacturing plant at a cost of about $2.5 billion, but state officials suggested the Mid-America Rail Campus at Falls City and two more facilities, which accounts for the company’s $7.5 billion ask from the federal loan program.

Nussbaum said two-thirds of Citroniq’s overall investment is proposed for Falls City.

Froeschl: “Nothing is for sure. Even at the EDGE annual banquet I said for members to make sure they are telling community members that nothing is for sure.”

He is hopeful that the project will survive federal budget cuts.

Froeschl: “We were hoping to have some federal loans approved by now. The new administration put a freeze on things.”

Julie Bushell, the leader of Gov. Jim Pillen’s BioEconomy Initiative, said the Citroniq projects falls squarely in line with the Trump Administration’s goal of on-shoring and revitalizing American manufacturing.

Bushell: “We are closely monitoring changes across the federal landscape and will continue to educate the importance of this project to achieve energy independence, on-shore critical compounds while supporting rural communities.”

https://www.newschannelnebraska.com/story/51291819/pillen-and-leaders-tout-nebraska-bioeconomy-initiative-as-key-to-future-economy