Proposed refinery would be showplace, Hyperion official says
By Dave Dreeszen, Journal business editor | Posted: Wednesday, August 22, 2007
SOUTH SIOUX CITY -- Hyperion Resources has not asked the state for financial aid to build a proposed oil refinery in Union County, S.D., or relief from any state regulatory or local zoning requirements, Gov. Mike Rounds said Tuesday.
"We've received absolutely no requests for incentives from Hyperion," Rounds said. "They've asked for no concessions."
Rounds made his comments to reporters after the Tri-state Governors Conference. During the biennial event, Rounds, Iowa Gov. Chet Culver and Nebraska Gov. Dave Heineman heard from the lead executive of the proposed $10 billion refinery, which would be the first built in the United States in 30 years.
J.L. "Corky" Frank repeatedly emphasized that Texas-based Hyperion is committed to building the nation's most environmentally friendly energy center, with world-class technology and equipment that eventually will become the industry standard.
"This refinery will be a showplace, not only for the Siouxland area but for the entire United States," he told an audience of more than 200 at the Marina Inn in South Sioux City.
After the eight-minute presentation, Rounds' fellow governors came away impressed with the scope of the massive project, which would create 1,800 permanent jobs with wages averaging $20 to $30 per hour.
The project is also expected to create an average of 4,500 construction jobs over four years and spin off multiple other new related businesses in the tri-state region.
"It's exciting in terms of job opportunities for all three states," Heineman said.
"Anytime you talk about creating thousands of jobs, that gets my attention," Culver added. "But we also have to balance, certainly, the environmental impact on the whole region and things like that, like we would with any project."
The Siouxland Chamber of Commerce, which coordinated the conference, invited Frank to speak in order to ask the governors for public support and to educate other state and local officials about the project, chamber president Debi Durham said.
Hyperion announced in June that a site just north of Elk Point is a leading candidate for its "green energy" center, which would refine 400,000 barrels of Canadian oil per day into ultralow-sulfur gasoline and diesel fuel.
The Texas-based energy firm, which is also considering at least one other site in another state, has secured options on about 10,000 acres in Union County, Frank confirmed Tuesday. That's more than enough to build the energy center, but Frank said the company wants to acquire additional land to create a larger buffer around the plant.
Though little new information about the project emerged Tuesday, Frank spent a great deal of time detailing the lengths Hyperion would go to protect the environment and neighboring residents. Plant emissions would be lower than at any other current refinery, and Hyperion also would produce its own energy to run the center.
"This plant will take a low-value waste product called petroleum coke and combine it with water and oxygen to produce the needed products for the refining process of electricity, steam and hydrogen," Frank said.
The project has drawn heated opposition from some local landowners and environmental groups. Several opponents were among those who packed the Marina Inn ballroom for Tuesday's conference.
Arden Hanson, whose Union County farm is among the parcels Hyperion still wants to option, was among those wearing "Save Union County" buttons. Hanson, who doesn't want to move, said nothing he heard Tuesday changed his mind about the project, which he said he fears could harm local residents' quality of life.
"They talk about how clean it's going to be," Hanson said. "You don't really know how clean it's going to be until it's up and running."
Frank, who did not take questions from reporters after his presentation, left the hotel through the kitchen, avoiding Union County landowners gathered in the lobby outside the ballroom.
During the conference, Rounds assured the local residents that the refinery project would not move forward if the company failed to garner sufficient public support, permits and zoning requirements.
"They can do a lot of work here, but if they don't meet the regulatory guidelines, then their project doesn't succeed," he said. "They realize they have to convince their neighbors, the people right here, that this is a good project for them, because zoning is not controlled at the state level in South Dakota, it's controlled at the local level."
If Hyperion selects the Union County site, Frank said, construction could begin as early as 2009, with production starting as early as 2013.
"We've received absolutely no requests for incentives from Hyperion," Rounds said. "They've asked for no concessions."
Rounds made his comments to reporters after the Tri-state Governors Conference. During the biennial event, Rounds, Iowa Gov. Chet Culver and Nebraska Gov. Dave Heineman heard from the lead executive of the proposed $10 billion refinery, which would be the first built in the United States in 30 years.
J.L. "Corky" Frank repeatedly emphasized that Texas-based Hyperion is committed to building the nation's most environmentally friendly energy center, with world-class technology and equipment that eventually will become the industry standard.
"This refinery will be a showplace, not only for the Siouxland area but for the entire United States," he told an audience of more than 200 at the Marina Inn in South Sioux City.
After the eight-minute presentation, Rounds' fellow governors came away impressed with the scope of the massive project, which would create 1,800 permanent jobs with wages averaging $20 to $30 per hour.
The project is also expected to create an average of 4,500 construction jobs over four years and spin off multiple other new related businesses in the tri-state region.
"It's exciting in terms of job opportunities for all three states," Heineman said.
"Anytime you talk about creating thousands of jobs, that gets my attention," Culver added. "But we also have to balance, certainly, the environmental impact on the whole region and things like that, like we would with any project."
The Siouxland Chamber of Commerce, which coordinated the conference, invited Frank to speak in order to ask the governors for public support and to educate other state and local officials about the project, chamber president Debi Durham said.
Hyperion announced in June that a site just north of Elk Point is a leading candidate for its "green energy" center, which would refine 400,000 barrels of Canadian oil per day into ultralow-sulfur gasoline and diesel fuel.
The Texas-based energy firm, which is also considering at least one other site in another state, has secured options on about 10,000 acres in Union County, Frank confirmed Tuesday. That's more than enough to build the energy center, but Frank said the company wants to acquire additional land to create a larger buffer around the plant.
Though little new information about the project emerged Tuesday, Frank spent a great deal of time detailing the lengths Hyperion would go to protect the environment and neighboring residents. Plant emissions would be lower than at any other current refinery, and Hyperion also would produce its own energy to run the center.
"This plant will take a low-value waste product called petroleum coke and combine it with water and oxygen to produce the needed products for the refining process of electricity, steam and hydrogen," Frank said.
The project has drawn heated opposition from some local landowners and environmental groups. Several opponents were among those who packed the Marina Inn ballroom for Tuesday's conference.
Arden Hanson, whose Union County farm is among the parcels Hyperion still wants to option, was among those wearing "Save Union County" buttons. Hanson, who doesn't want to move, said nothing he heard Tuesday changed his mind about the project, which he said he fears could harm local residents' quality of life.
"They talk about how clean it's going to be," Hanson said. "You don't really know how clean it's going to be until it's up and running."
Frank, who did not take questions from reporters after his presentation, left the hotel through the kitchen, avoiding Union County landowners gathered in the lobby outside the ballroom.
During the conference, Rounds assured the local residents that the refinery project would not move forward if the company failed to garner sufficient public support, permits and zoning requirements.
"They can do a lot of work here, but if they don't meet the regulatory guidelines, then their project doesn't succeed," he said. "They realize they have to convince their neighbors, the people right here, that this is a good project for them, because zoning is not controlled at the state level in South Dakota, it's controlled at the local level."
If Hyperion selects the Union County site, Frank said, construction could begin as early as 2009, with production starting as early as 2013.
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Oil wrote on Sep 5, 2007 7:19 PM:
Keith wrote on Aug 28, 2007 2:37 PM:
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Oil wrote on Aug 26, 2007 5:20 PM: