Gorilla unveiled
S.D. site is finalist for oil refinery
By Dave Dreeszen and Michele Linck, Journal staff writers | Posted: Thursday, June 14, 2007
ELK POINT, S.D. -- The Gorilla has been freed from its shroud of secrecy. A Texas-based energy firm wanting to build the first U.S. oil refinery in three decades said Wednesday that Union County is a finalist for its $8 billion project.
The refinery, which Hyperion Resources touted as the epicenter of a "green energy technology center," would create as many 10,000 jobs to build the sprawling plant. When completed in four years, it would employ 1,800 at wages averaging $20 to $30 per hour, company representatives said.
Project executive Preston Phillips said Hyperion is also considering "alternative sites" in at least a couple of other Midwest states, which were not identified. A final decision should come by the first half of 2008, he said.
He made his comments to a throng of journalists, local leaders and curious residents who packed a room in the county courthouse for a hastily called late-afternoon news conference.
The announcement ended months of intense speculation over the mystery economic development project, dubbed Gorilla. Until Wednesday, only a handful of local and state leaders knew the identity of the entity that has been optioning large chunks of farmland northwest of Elk Point, a city of about 1,800. The Journal first reported the purchases last October.
Phillips said his firm did not want to reveal the project until the bulk of the tract had been assembled. The company now has options on about 5,000 acres in an area just east of Interstate 29, he said, but its representatives are still negotiating with additional landowners. The energy center itself will require about 2,000 acres of land, Phillips said.
"I think with the level of speculation we've been seeing we just felt it was appropriate to come out and announce who we were and announce what we were trying to do," he said. "This project will have many benefits to the community."
After learning the Gorilla's identity, local leaders praised the project, saying it has the potential to give the tri-state region a huge economic boost.
"I think it's truly an opportunity to transform the local area, not just Elk Point," said Sioux City Councilman Brent Hoffman, who attended the news conference. "This is an opportunity for the area the likes of which we're not likely to see for a generation. I hope the citizens will embrace it."
Hyperion Resources, based in Dallas, Texas, is a privately held international energy company. In the United States, its primary activities are oil and gas production, but the company and its affiliates also invest and operate in real estate, agriculture and other ventures.
The Hyperion Energy Center would refine about 400,000 barrels of crude oil per day from Canada into ultralow-sulfur gasoline and diesel fuel. Richard Benda, secretary of the South Dakota Department and Tourism and State Development, said the output would meet the combined demands of Iowa, Nebraska and South Dakota motorists.
Described as the most "environmentally sound energy center in the country," Hyperion said it would be equipped with cutting-edge technology to protect the local air and water and sharply reduce greenhouse gases.
"This is not your grandfather's refinery," Benda told the audience.
Plans also call for construction of an on-site power plant to supply hydrogen, steam and electricity to the refinery. The facility, which would consume a petroleum coke byproduct, would employ a high-tech gasification process designed to create substantially lower emissions than conventional power plants.
Confirming earlier local reports, Phillips said the refinery would use 12 million gallons of water per day from the nearby Missouri River to cool the plant. That's enough to fill 18 Olympic-size swimming pools. The water would be treated and put through a reverse osmosis process and be returned to the river cleaner than it was, he said.
Phillips said there are several options for getting the Canadian crude to the refinery, including the Keystone pipeline being planned by utility giant TransCanada. Keystone, which would carry 435,000 barrels of crude per day, is scheduled to cross the Missouri River near Yankton, about 30 miles east of the proposed Gorilla site. TransCanada has previously said the crude would be sent to refineries in Illinois and Oklahoma.
The Hyperion Energy Center, if completed, would be the first U.S. refinery built since 1976. Industry analysts blame the lack of new construction on prohibitively strict and expensive environmental regulations and the extremely slow return on the multibillion-dollar investment.
Environmental penalties and petroleum companies' settlement agreements with the federal Environmental Protection Agency to spend billions on added control technologies may have encouraged Hyperion to invest in a "green" refinery now.
Benda and Phillips said America needs additional refining capacity to keep up with growing demand for gas and diesel and to reduce dependence on foreign oil.
"We believe Americans would rather have greater alliances with the Canadians to the north and not have the Middle East have a stranglehold on America," Benda said.
Though the company has not settled on a location, Phillips said Hyperion has "high hopes" for the southeastern South Dakota site. He said the state and region have multiple attributes, including a talented local work force, good rail and interstate access, abundant water and a pro-business climate.
"We certainly hope it's wanted here," he said. "We want to be a good neighbor."
The state of South Dakota has not committed an incentive package, Benda said, and won't until the company decides whether to locate here.
If chosen for the refinery, Benda and Phillips promised that county residents would have plenty of opportunities to offer input during a lengthy process that will require the company to obtain multiple permits and zoning changes.
For now, Phillips said the company is doing engineering and other preliminary work to determine if the site is feasible for construction.
"There's still a lot of work to be done before we select the final site," he said.
If you have information to share on this project, please e-mail the Journal at frontdoor@siouxcityjournal.com.
Watch for further updates today at siouxcityjournal.com and in Friday's Sioux City Journal.
Related stories
Landowners mixed on refinery news
The refinery, which Hyperion Resources touted as the epicenter of a "green energy technology center," would create as many 10,000 jobs to build the sprawling plant. When completed in four years, it would employ 1,800 at wages averaging $20 to $30 per hour, company representatives said.
Project executive Preston Phillips said Hyperion is also considering "alternative sites" in at least a couple of other Midwest states, which were not identified. A final decision should come by the first half of 2008, he said.
He made his comments to a throng of journalists, local leaders and curious residents who packed a room in the county courthouse for a hastily called late-afternoon news conference.
The announcement ended months of intense speculation over the mystery economic development project, dubbed Gorilla. Until Wednesday, only a handful of local and state leaders knew the identity of the entity that has been optioning large chunks of farmland northwest of Elk Point, a city of about 1,800. The Journal first reported the purchases last October.
Phillips said his firm did not want to reveal the project until the bulk of the tract had been assembled. The company now has options on about 5,000 acres in an area just east of Interstate 29, he said, but its representatives are still negotiating with additional landowners. The energy center itself will require about 2,000 acres of land, Phillips said.
"I think with the level of speculation we've been seeing we just felt it was appropriate to come out and announce who we were and announce what we were trying to do," he said. "This project will have many benefits to the community."
After learning the Gorilla's identity, local leaders praised the project, saying it has the potential to give the tri-state region a huge economic boost.
"I think it's truly an opportunity to transform the local area, not just Elk Point," said Sioux City Councilman Brent Hoffman, who attended the news conference. "This is an opportunity for the area the likes of which we're not likely to see for a generation. I hope the citizens will embrace it."
Hyperion Resources, based in Dallas, Texas, is a privately held international energy company. In the United States, its primary activities are oil and gas production, but the company and its affiliates also invest and operate in real estate, agriculture and other ventures.
The Hyperion Energy Center would refine about 400,000 barrels of crude oil per day from Canada into ultralow-sulfur gasoline and diesel fuel. Richard Benda, secretary of the South Dakota Department and Tourism and State Development, said the output would meet the combined demands of Iowa, Nebraska and South Dakota motorists.
Described as the most "environmentally sound energy center in the country," Hyperion said it would be equipped with cutting-edge technology to protect the local air and water and sharply reduce greenhouse gases.
"This is not your grandfather's refinery," Benda told the audience.
Plans also call for construction of an on-site power plant to supply hydrogen, steam and electricity to the refinery. The facility, which would consume a petroleum coke byproduct, would employ a high-tech gasification process designed to create substantially lower emissions than conventional power plants.
Confirming earlier local reports, Phillips said the refinery would use 12 million gallons of water per day from the nearby Missouri River to cool the plant. That's enough to fill 18 Olympic-size swimming pools. The water would be treated and put through a reverse osmosis process and be returned to the river cleaner than it was, he said.
Phillips said there are several options for getting the Canadian crude to the refinery, including the Keystone pipeline being planned by utility giant TransCanada. Keystone, which would carry 435,000 barrels of crude per day, is scheduled to cross the Missouri River near Yankton, about 30 miles east of the proposed Gorilla site. TransCanada has previously said the crude would be sent to refineries in Illinois and Oklahoma.
The Hyperion Energy Center, if completed, would be the first U.S. refinery built since 1976. Industry analysts blame the lack of new construction on prohibitively strict and expensive environmental regulations and the extremely slow return on the multibillion-dollar investment.
Environmental penalties and petroleum companies' settlement agreements with the federal Environmental Protection Agency to spend billions on added control technologies may have encouraged Hyperion to invest in a "green" refinery now.
Benda and Phillips said America needs additional refining capacity to keep up with growing demand for gas and diesel and to reduce dependence on foreign oil.
"We believe Americans would rather have greater alliances with the Canadians to the north and not have the Middle East have a stranglehold on America," Benda said.
Though the company has not settled on a location, Phillips said Hyperion has "high hopes" for the southeastern South Dakota site. He said the state and region have multiple attributes, including a talented local work force, good rail and interstate access, abundant water and a pro-business climate.
"We certainly hope it's wanted here," he said. "We want to be a good neighbor."
The state of South Dakota has not committed an incentive package, Benda said, and won't until the company decides whether to locate here.
If chosen for the refinery, Benda and Phillips promised that county residents would have plenty of opportunities to offer input during a lengthy process that will require the company to obtain multiple permits and zoning changes.
For now, Phillips said the company is doing engineering and other preliminary work to determine if the site is feasible for construction.
"There's still a lot of work to be done before we select the final site," he said.
If you have information to share on this project, please e-mail the Journal at frontdoor@siouxcityjournal.com.
Watch for further updates today at siouxcityjournal.com and in Friday's Sioux City Journal.
Related stories
Landowners mixed on refinery news
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Farmer 2 wrote on Jun 20, 2007 1:29 PM:
Union County Resident wrote on Jun 19, 2007 7:14 PM:
Farmer 2 wrote on Jun 19, 2007 10:54 AM:
SD farmer wrote on Jun 18, 2007 3:12 PM:
Hometown Girl wrote on Jun 18, 2007 1:09 PM: