New biofuels plant headed for Havre

A new biofuels plant may be in Havre's near future.

Montana State University-Northern Chancellor Frank Trocki said this morning the planning of the construction, on the Montana Agro-Energy Industrial Park being put together southwest of Havre, is in the final planning stages.

"The startup of construction could happen as early as September or October, " Trocki said.

A group working to implement new technology in a variety of fields, MCAI Group, plans to build the 24-million-gallon-a-year facility, expected to create 40 to 50 jobs in the area.

MCAI Managing Director Michael Sanders said his group is working closely with Northern, Bear Paw Development Corp. and local leaders in putting the project together.

"Havre is a diamond in the rough. We're convinced this project has tremendous value in just about every socio-economic way imaginable, " Sanders said in a press release. "We're getting this thing done, and we're close to being able to put a shovel in the ground. We just have a few key details to work out. "

Hill County Commissioner Kathy Bessette said this morning that the creation of a major plant would be "wonderful. "

"I think it's great, and with (Northern) involved who knows what might happen, " she said.

The refinery will work with Northern and its Bio-Energy Lab, which will provide research, testing services and co-op students to the plant. The plant will use camelina and other agricultural products and waste materials to produce fuels.

Bullhook Innovation Group, a subsidiary of MCAI Group, says on its website that MCAI signed a long-term licensing agreement with Northern and the Bio-Energy Lab in November to implement the knowledge Northern has gained in biofuel production.

"(Bullhook Innovation Group) will conduct primary operations in Havre … where we will begin building a biofuel production facility in the second quarter of 2011 as part of our agreement with MSUN, " the group's webpage says.

This is not the first time the idea of putting a major renewable energy product near Havre has arisen. Another attempt, by Allied Bio-Energy, was announced in 2007, although that plan ended up dying, apparently due to lack of funding.

The county is creating an industrial park southwest of town with the intent of housing businesses focused on renewable energy and value-added agriculture on the park.

Another subsidiary of the MCAI Group — which describes itself on its website as partnering with academic institutions to use knowledge to improve delivery of products and services in a variety of fields — also is involved with the Havre project. That is Synergist Capital Group, the funding arm of MCAI Group.

"We created Synergist with the Havre project in mind, " said J. Stanford Spencer, CEO of the capital group. "Over the past two years we have seen a variety of renewable energy projects that were stymied because of a lack of funding, or by the lack of appropriate funding. Typical venture capital channels do not fit projects like the one in Havre. "

Sanders said he came to look at the opportunity in Havre at the invitation of Trocki, who he has known for several years. Trocki painted an intriguing picture of the opportunities here, Sanders said.

"I immediately saw the potential, but I see potential in many places I visit, " he said. "The differentiator between this particular project and every other project that has been presented to MCAI was Havre — the people of Havre, their love for their community, and the great pride they have in MSU-N.

"MCAI is looking at this opportunity as a multi-generational investment project, " he added. "We are not interested in building a facility only to flip it in three to five years. This is a community enhancement project that will revitalize Havre and lead to many other opportunities to bring additional businesses and high-paying jobs to Havre. "

Online: MCAI Group