Empire State Ethanol and Energy sues BBI for $72 million over Port of Albany lease

In New York, Empire State Ethanol and Energy filed suit in federal court against ethanol consultancy BBI International, seeking $72 million in damages. The suit alleges that BBI executives , while consultants to Empire, evaluated a Port of Albany site for a corn ethanol plant, resigned the Empire account, formed Albany Renewable Energy and secured the lease from the Port of Albany for their own venture.

Port of Albany

Albany Renewable Energy is investigating molasses as a substitute for corn for its proposed 110 Mgy ethanol plant for the Port of Albany. Rising corn prices have led to the search for new feedstocks. Westway Trading is in talks with ARE to supply the new feedstock; however, the plant has not yet commenced its financing drive pending negotiation of the Port District lease.

It was reported recently in the Digest that Albany Renewable Energy is facing challenges on its $350 million ethanol plant in the Albany Port District, based on reduced margins from ethanol operations and rising construction costs. In addition to the fast-rising price of corn, ethanol production utilizes 35,000 BTUs of natural gas per gallon produced, and 1.1 KWh of electricity, and costs for both are under pressure. The Albany plant was designed to produce ethanol as a substitute for MTBE, which reduces smog when combined with gasoline but has proven to be a carcinogen.

Free Subscription to the Daily Biofuels Digest e-newsletter

Related Stories

Albany Renewable Energy signs 20-year pact with Port of Albany for $350 million ethanol project; lawsuit filed by Empire State Ethanol

In New York, the saga of Albany Renewable Energy added a chapter with the signing of a 20 year lease, between the company and the Port of Albany, for a $350 million ethanol plant on the port's riverfr...

Albany Renewable Energy investigates molasses as feedstock for proposed 110 Mgy plant in New York

In New York, Albany Renewable Energy is investigating molasses as a substitute for corn for its proposed 110 Mgy ethanol plant for the Port of Albany. Rising corn prices have led to the search for new...

Albany Renewable Energy announces $350 million ethanol project in New York

In New York, Albany Renewable Energy announced a $350 million ethanol  plant, but said that after winning a bid competition conducted by the The Albany Port District Commission that it had not yet ...

$350 million Albany Renewable Energy project faces corn, power, natural gas cost hurdles

In New York, Albany Renewable Energy is facing challenges on its $350 million ethanol plant in the Albany Port District, based on reduced margins from ethanol operations and rising construction costs....

Bunge to build up Itaqui as alternative Brazilian ethanol port

In Brazil, Vale and Bunge have announced a partnership to transport 26 Mgy of Bunge ethanol in 2010 via Vale rail to the Itaqui port in Maranhao state. The port will be an alternative to the more sout...

Ethanol trader sells Albany terminal for 300 percent return after 18 months; new owners say ethanol focus was key to their decision to buy

In New York, ethanol trader BioUrja Trading sold the LogiBio Albany Terminal for $46.5 million to Buckeye Partners, realizing a 300 percent profit million profit after buying the terminal out of bankr...