Date: January 1, 2008

Author: Michael Peltier

Source: Naples Daily News

Sparked by an enthusiasm by a new governor and heightened gas prices, 2007 marked a push toward alternative energy sources that could include a citrus-fueled ethanol plant in nearby Hendry County.

Plans remained secret as 2007 drew to a close but FPL Energy, a subsidiary of Juno-based FPL Group, has made no bones about the fact it wants to construct an ethanol production facility somewhere in South Florida.

The top bet has been U.S. Sugar, which operates a sprawling citrus processing plant in Hendry County.

Through its Southern Gardens Citrus subsidiary, U.S. Sugar owns the state’s largest citrus processing plant, which would produce 4 million gallons of ethanol annually as an additive for gasoline.

But company officials have remained mute on the project since it was first unveiled in July.

“It’s still in discussion at this point,” said U.S. Sugar spokeswoman Judy Sanchez. “Nothing has been decided.”

Ethanol production has been a key ingredient of Gov. Charlie Crist’s efforts to wean the state off its dependence on foreign oil. With sugarcane and other vegetable crops available across the state, Crist has pushed lawmakers to provide incentives to companies willing to take on Brazil, the world’s largest ethanol producer.

Some estimate Florida could produce 60 million gallons of ethanol, which is used as a gasoline fuel additive. Automakers are also already working on plans to increase the production numbers of ethanol-fueled cars.

“Smartly, Brazil back in the early ‘70s — when we had all these long lines at the gas stations — shifted to ethanol,” Crist said recently. “As a result, they are not dependent on foreign oil like we are.”

Lawmakers returning in March are expected to develop an alternative energy package that will include ethanol incentives.

Backers of the Hendry plant are hoping to set off a domino effect that would attract smaller processors to add ethanol to their production portfolios.

FPL Energy, a leading supplier of wind and solar power, would help finance and operate the plant, which is expected to cost more than $10 million to build.

FPL has teamed up with Boca Raton-based Citrus Energy Inc, whose executives have said would reduce the amount of citrus waste while still allowing enough to be used as feed.

“No, nothing new yet,” said Tom Stender, Citrus vice president for business development, said of a final agreement. “We’re continuing our engineering work.”

Stender, however, predicted a final agreement during the first half of 2008.

In Florida, there is the potential to produce 60 million gallons of ethanol annually. The new plant in Hendry County would be built to expand capacity if the market dictates.