Thune says Hyperion looking into options for financing
By Dave Dreeszen Journal business editor | Posted: Thursday, April 24, 2008
WASHINGTON -- U.S. Sen. John Thune, R-S.D., said Wednesday Hyperion Refining representatives did not inquire about federal financing for the proposed energy center when he met with them last week in Washington. But the Texas energy firm did bring up the subject in earlier meetings with his staff, he said.
The Republican senator said the issue was raised in the context of exploring different financing options. Many involve raising private capital.
"My impression's been that there's going to be a considerable amount of interest in the capital market because of the attractiveness of a project like that," Thune told the Journal in an interview on Capitol Hill. "They could finance it that way."
On Tuesday, South Dakota's Democratic Sen. Tim Johnson told a group of Siouxland leaders that Hyperion representatives approached him two weeks ago in an attempt to line up federal loan guarantees for the proposed $10 billion oil refinery and power plant in Union County. Johnson said he "balked" at the request, and the company's representatives then "went to see Sen. Thune."
According to Johnson's office, Hyperion's project does not appear to be eligible for such a program, in which taxpayers would be on the hook if the borrower defaults.
A Hyperion spokesman would only say that the company is exploring several different financing options.
Union County voters will decide June 3 whether to ratify or reject the county commission's decision last month to rezone 3,292 acres of agriculture land Hyperion controls into a new classification, Planned Energy Center Development.
The massive "green" energy project has been a top priority of the Siouxland Chamber of Commerce during its two-day lobbying trip to the nation's capital. Supporters trumpet the jobs and capital investment the project would bring, as well as the advanced environmentally friendly technology the 400,000-barrel-per-day refinery would use to turn crude from Alberta, Canada, into gasoline, diesel and jet fuel.
Critics argue the refinery would pollute the environment, destroy Union County's rural way of life and create added costs for local taxpayers.
Meeting with the tri-state delegation Wednesday, Johnson said the proposed refinery could play a role in weaning America off Middle East oil and lowering the price consumers pay at the pump.
"The cost of fuel is crippling the economy," he told the local leaders. "There are a lot of interesting projects out there right now that could help relieve some of that pressure, one of which is Hyperion. We have a terrible need for refining capacity in this country."
Thune added the solution to the energy woes also includes increased domestic production and use of ethanol and biofuels, which he said has helped keep the price of fuel from going even higher.
Business leaders from Union County pitched the Hyperion project to every member of the tri-state congressional delegation that they met with. South Dakota's lone Rep. Stephanie Herseth Sandlin canceled her scheduled meeting Wednesday morning because of a conflict.
Nebraska's three House members -- Reps. Jeff Fortenberry, Lee Terry and Adam Smith -- all voiced support for increased domestic oil refining, like Hyperion's project.
The Republican senator said the issue was raised in the context of exploring different financing options. Many involve raising private capital.
"My impression's been that there's going to be a considerable amount of interest in the capital market because of the attractiveness of a project like that," Thune told the Journal in an interview on Capitol Hill. "They could finance it that way."
On Tuesday, South Dakota's Democratic Sen. Tim Johnson told a group of Siouxland leaders that Hyperion representatives approached him two weeks ago in an attempt to line up federal loan guarantees for the proposed $10 billion oil refinery and power plant in Union County. Johnson said he "balked" at the request, and the company's representatives then "went to see Sen. Thune."
According to Johnson's office, Hyperion's project does not appear to be eligible for such a program, in which taxpayers would be on the hook if the borrower defaults.
A Hyperion spokesman would only say that the company is exploring several different financing options.
Union County voters will decide June 3 whether to ratify or reject the county commission's decision last month to rezone 3,292 acres of agriculture land Hyperion controls into a new classification, Planned Energy Center Development.
The massive "green" energy project has been a top priority of the Siouxland Chamber of Commerce during its two-day lobbying trip to the nation's capital. Supporters trumpet the jobs and capital investment the project would bring, as well as the advanced environmentally friendly technology the 400,000-barrel-per-day refinery would use to turn crude from Alberta, Canada, into gasoline, diesel and jet fuel.
Critics argue the refinery would pollute the environment, destroy Union County's rural way of life and create added costs for local taxpayers.
Meeting with the tri-state delegation Wednesday, Johnson said the proposed refinery could play a role in weaning America off Middle East oil and lowering the price consumers pay at the pump.
"The cost of fuel is crippling the economy," he told the local leaders. "There are a lot of interesting projects out there right now that could help relieve some of that pressure, one of which is Hyperion. We have a terrible need for refining capacity in this country."
Thune added the solution to the energy woes also includes increased domestic production and use of ethanol and biofuels, which he said has helped keep the price of fuel from going even higher.
Business leaders from Union County pitched the Hyperion project to every member of the tri-state congressional delegation that they met with. South Dakota's lone Rep. Stephanie Herseth Sandlin canceled her scheduled meeting Wednesday morning because of a conflict.
Nebraska's three House members -- Reps. Jeff Fortenberry, Lee Terry and Adam Smith -- all voiced support for increased domestic oil refining, like Hyperion's project.
Story Comments
Read More and Post Comments 0 comment(s)
Please note: The following are comments from readers. In no way do they represent the views of The Sioux City Journal or Lee Enterprises. We will not edit or alter your comments, but we do reserve the right to not post or to remove comments that violate our code of conduct. No comment may contain potentially libelous statements; obscene, explicit or racist language; personal attacks, insults or threats. Terms of Service
