March 14, 2013 9:44:35 AM
NATCHEZ -- Adams County has received $3.9 million in grants from the state for work on a levee and new water system on the former Belwood County Club property, the future site of KiOR's Natchez alternative fuel production facility.
The Natchez Democrat reports that the county initially had sought to borrow the money to partially finance the work. When the Mississippi Development Authority found the work wasn't eligible for the loan, it offered two separate grants.
Natchez Inc. Executive Director Chandler Russ said $2 million will go the levee work and $1.9 million for a new well, a water tank and improvements to existing water lines.
Russ said the levee is expected to cost around $5 million. A bond will finance the remainder of the levee work.
The levee work will not move forward until the county enters into a memorandum of understanding with the company about its commitment, Russ said.
"We don't foresee us not being able to get to terms with them," he said.
"It is a matter of getting everybody back together in a room and getting agreements in place."
The company expects that the Natchez facility will yield 72 gallons per bone dry ton. The company's long-term target is 92 gallons per ton.
Based in Pasadena, Texas, KiOR is also building a $220 million-plus refinery in Lowndes County to extract the equivalent of light crude oil from wood chips. It refines the oil into gasoline and diesel fuel.