Cloverdale POET facility to resume prodution in 2023

CLOVERDALE — The POET bioprocessing facility north of Cloverdale is set to resume production in 2023.

The company, which is the world’s largest producer of biofuels, formally made the announcement on Wednesday.

Local and state officials had taken recent action in an attempt to woo POET back to Putnam County in a competitive process that included possible facilities in two other Midwest states.

Last week, the Putnam County Council approved a five-year abatement for the Cloverdale facility provided the company chose to resume production locally. Through the five-year abatement, POET will pay no local property taxes on real estate or personal property for five years, after which the company will pay the full tax bill.

This method of abatement was a departure for the County Council, which has in the past opted for a 10-year, straight-line abatement that phases in the taxes over the course of the abatement. The Council arrived at this approach working with Greencastle/Putnam County Economic Development Director Kristin Clary, whose organization worked closely with the Council and the company to bring active processing back to the Cloverdale facility.

“We are so excited that we were selected to once again begin ethanol production in southern Putnam County at POET’s facility,” Clary said. “We put a lot of hard work into this effort, and it has paid off with some very good news. We know this was a highly competitive process, having to choose between us and two other sites in two other states, and are grateful that both the Putnam County Council and State of Indiana stepped up to offer a great incentive package to help POET make the decision to choose Putnam County and Indiana.

“It was a pleasure working with Buck Yerdon at POET, and we feel like both POET and Putnam County will be greatly rewarded for this decision. Agriculture is essential to Putnam County’s economic health, and having POET reopen their ethanol production facility will help both farmers and the community.”

Before the Council took action on the abatement, POET had already been approved for tax credits from the Indiana Economic Development Corp.

Praising Clary for her work in promoting the community, District 4 County Councilman Keith Berry shared his excitement at the news of POET’s return. Not only is the facility in Berry’s district, but he is also a retired farmer.

“I think it’s just wonderful the farmers in the area have another place to market their product,” Berry said, before noting the new jobs that will also be created. “It’s multiple pluses for the county, for employees, and this is an agricultural area.”

In a statement announcing the return to Cloverdale, POET also credited federal and state policy makers for taking action “to safeguard domestic markets for low-carbon biofuels.”

The facility will create 50 full-time local jobs (eight already exist, with 42 to be added) and generate demand for 34 million bushels of corn from Indiana farmers annually. Restarting the Cloverdale facility will bring POET’s network to a total of 34 bioprocessing plants across eight Midwest states, five of which are located in Indiana.

“We are very excited to be reopening our Cloverdale facility,” POET founder and CEO Jeff Broin said. “The plant will undergo significant upgrades to include the same industry-leading advantages operating at other POET plants, and we are confident it will be a strong asset to the POET portfolio. We are grateful to the Putnam County Council and the Putnam County Economic Development Corporation for supporting this investment.”

The local facility first opened in April 2008 as Altra Biofuels, but was shuttered eight months later. POET then acquired the property in 2010, resumed production in 2011 and had a much better run before idling production in 2019, with the jobs moved to Shelbyville.

New investment in the facility should bring the facility in line with other POET facilities.

The company is planning to invest $30 million in new technology to create operational efficiencies that will position the facility for long-term success and increase its annual production rate from 80 million to 95 million gallons of bioethanol.

POET Bioprocessing – Cloverdale was initially idled in 2019 due in part to what the company referred to as “the U.S. Environmental Protection Agency’s mismanagement of small refinery exemptions (SREs).” This created an artificial cap on domestic demand for bioethanol and drove RIN values to near-zero, which weakened the incentive for retailers to offer higher biofuel blends.

In recent months, however, the Biden Administration has made strides in showing support for biofuels, most notably with a waiver enacted in April lifting outdated restrictions on E15, a 15 percent bioethanol blend, to help curtail skyrocketing prices at the pump.

“Agriculture is at the backbone of Indiana’s economy,” said Congressman Jim Baird (R-Greencastle). “Bioprocessing, ethanol and other biofuel facilities play an integral role in supporting rural jobs and strengthening local economies across Indiana and the Midwest. Facilities like POET Cloverdale create new markets for family farms and contribute to state and local tax revenue all while improving vehicle emissions. We’re fortunate to have POET’s investment in West Central Indiana, and the value it will bring to Hoosier farmers and rural communities.”

Berry echoed some of these points.

“I’ve said so many times that people have no idea where their food comes from. And I understand POET is more fuel than food, but it’s still a market for agricultural product,” Berry said. “I’m very, very glad that they decided to take advantage of this opportunity and I’m glad they’re coming back into the county and rebuilding.”

While the tax credits and abatement were certainly an enticement for POET’s resumption of production, the company pointed to other actions from the state that indicate a commitment to biofuels.

In March, the Indiana Senate sustained Gov. Eric Holcomb’s veto of anti-E15 legislation. Indiana’s strong support for E15 — including actions by the governor, lieutenant governor and legislature — was a key factor in POET’s decision to reinvest in the state.

“POET’s bioprocessing plants produce low-cost, low-carbon biofuels, bioCO2, high-protein animal feed and a growing suite of other bioproducts from American grain,” said Broin. “These facilities are good for farmers, good for rural communities, and good for the world, and we look forward to the positive impacts POET – Cloverdale will create in the years to come.”

Clary also noted that the Indiana Department of Transportation had already begun plans to improve the intersection of U.S. 231 and County Road 800 South at the POET highway entrance just north of Cloverdale. The improvements should improve access to the facility.

POET is also located in an opportunity zone, the only one in Putnam County, which could afford it corporate/capital gains tax relief through the U.S. Tax Code in the future.

Clary noted that POET plans to begin improvements in June and to be open within the next 10-12 months.

For more information and career opportunities, visit poet.com/cloverdale.