“These inducements from Taylor County are critically important factors in our decision to locate a plant here and we’re looking forward to advancing the project rapidly with the initial disbursement of funds this week,” said Bryan Kornegay, Jr., President and CFO of BioNitrogen. “The Taylor County plant benefits from our four pillar approach: feedstock, plant, offtake and financing.”
The Four Pillar Approach includes i) Feedstock contracts for up to 25 years to manage the feedstock and ensure the plant has a robust biomass supply chain, ii) Plant technology and EPC contracts with best in class technology providers, iii) Offtake agreements with United Suppliers, Inc. in the US and Canada, which will provide USI with the plant production of approximately 179,400 tons annually per plant for twenty-five (25) years and iv) Financing for each plant project that includes tax free bonds and local inducement packages that include tax abatements for 10 years, local and state funds, grants and tax credits that in total exceed $10 million per site.
Kornegay added, “With these types of local incentive packages, we are setting a higher bar for future plant sites. This is a clear indication that the job creation and tax base for the next 25 years and more for our plants resonates well with certain communities. We are providing a base that rural ag and forestry dependent counties can grow from, and areas such as Taylor County are embracing it.”