Osage Bio Energy has announced its board of directors will sell the company. Osage has also decided not to begin production at its Appomattox Bio Energy ethanol plant in Hopewell, Virginia that had originally been scheduled to be online in May of 2010. The company was to use barley as its primary feedstock. As a result of this action, the company will implement a reduction in force effective May 25, 2011. A core team of employees will continue to work at the plant to help facilitate the sale and maintain the condition of the assets for prospective buyers.
“Osage Bio Energy would like to recognize and acknowledge the efforts of the many employees, community leaders and supporters that came together to develop this project over the past few years,” said Heather Scott, company spokesperson. “Appomattox Bio Energy is a first of its kind facility in the United States and represents a unique opportunity for multi-feedstock ethanol production to its future owner.”
While not mentioned in the press release, the company had a major set-back when last September several explosions occurred at the plant forcing pre-production activities to come to a halt. Just in the past two weeks, the city of Hopewell began legal actions to recoup loss of tax revenue that was anticipated to be nearly $2.19 million. The city is looking at a nearly $600,000 budget shortfall from the anticipated tax revenues that would have kicked in once the plant went into production.
Osage Bio Energy, founded in 2007, said its Hopewell, Virginia plant is fully functional and production ready with the capacity to produce 65 million gallons of ethanol per year.