29/12/2023
JUST IN TIME FOR CHRISTMAS! AZURE RIDES SANTA'S SLEIGH
INTO MONTGOMERY COUNTY WITH ANNOUNCEMENT OF A JET AVIATION PRODUCTION PLANT
(Edited at 11:45 a.m. Tuesday with clarified details and language)
CHERRYVALE — A Canadian-based company announced its plans Monday morning to develop a jet fuel processing center adjacent to the Bartlett Grain soybean processing plant that is now under construction south of Cherryvale.
Azure Sustainable Fuels, which is based in Calgary, Alberta, will spend $900 million to build the refinery (it's technically known as a processing center) and provide clean-burning fuel to the aviation industry.
The Azure processing center will be unique in that it will be use soybean oil, processed from the neighboring Bartlett plant, as a primary feed stock in the production of sustainable aviation fuel, or SAF. The global aviation industry has set a target date of 2030 to decarbonize its fuel emissions — shifting from traditional, crude oil-based fuel to sustainable aviation fuel.
Azure’s announcement is not permanent, due to various regulatory and due diligence decisions that will have to be made during 2024. The company hopes to have a final decision about its plans by late 2024, with expectations of a construction date in early 2025.
However, the company’s plans, if they come into fruition, would be a game changer in terms of the overall economy, the aviation and agriculture industries, and growth impact on local communities.
A few details about the project that were announced at Monday's meeting of the Montgomery County Commission:
• The processing center will be immediately north of the Bartlett plant, bordered by county road 4400 to the north, county road 5500 to the east, and the Republic Services landfill to the west.
• The Azure processing center will have a capacity to refine 135 million gallons of sustainable aviation fuel, or SAF, per year.
• The facility will require 500 tons of soy oil annually from the adjacent Bartlett soybean plant in order to fill the plans for producing 135 millions gallons of SAF.
• If all regulatory permits are approved and due diligence decisions prove favorable, construction of the processing center would begin in early 2025 and will involve a total of 1,500 workers spanning two years of construction. Therefore, the processing center is slated for production in 2027.
• Once built, the Azure facility will employ upwards of 150 workers.
• Azure Sustainable Fuels will receive a 10-year property tax exemption, plus an exemption on sales taxes on the purchase of construction materials and labor. Those tax incentives are the norm within the state of Kansas as it relates to commercial or industrial development.
The site will be subject to full taxation following the 10th year of that tax incentives.
Local entities that will be the largest beneficiaries due to increased tax valuation will be USD 447-Cherryvale, Montgomery County and Independence Community College.
• A cost-benefit analysis that was prepared for the Azure Sustainable Fuels showed a return of investment, or ROI factor of 1.62, meaning the Montgomery County tax base will receive upwards of $1.62 for every $1.00 spent by Azure on this project.
• The economic implications of having Azure Sustainable Fuels invest its dollars in Montgomery County are staggering. The Azure project could generate a total economic impact of more than $1.7 billion. Potential spin-off businesses and investments in infrastructure from both the Azure facility and the Bartlett plant could likely lead to an overall combined economic project in excess of $2 billion.
The Prairie Star will have the most complete details and explanation of the Azure project in the Dec. 21 issue.