A good news story in the ethanol industry has hit a speed bump. Marquis Energy LLC has announced its pulling back on a planned project to double the size of its 140 MMgy ethanol plant in Hennepin, Ill., due to a tax assessment dispute.
The assessed value of the ethanol plant for 2011 was $26.8 million, according to the Putnam County Assessment Office. The 2010 assessment was similar. Mark Marquis, president of Marquis Energy, said that the assessment is incorrect and doesn&rsquo;t properly allocate personal property versus real property, taxing substantial amounts of nontaxable personal property. The valuation is nearly double the average assessment of 35 other U.S. ethanol plants of similar size and design. &ldquo;No ethanol company would want to expand with this incorrect and grossly exaggerated tax assessment issue remaining unresolved,&rdquo; he said.
Although the Marquis Energy attempted to reach an agreement with the assessor office attorneys and State&rsquo;s Attorney, the issue is now pending a hearing at the State of Illinois Property Tax Appeal Board, the company said. The date of the hearing has not yet been set.
The tax assessment is a key issue in whether Marquis Energy moves forward with the expansion of the plant. &ldquo;It is unfortunate that the construction jobs and permanent jobs resulting from a planned expansion would be delayed,&rdquo; Marquis said. The company told EPM previously that the expansion would create 40 additional jobs at the ethanol plant, plus temporary construction jobs.
Construction on the originally 100 MMgy facility began in 2006. An expansion later brought it up to 140 MMgy. The plan from the beginning was to double the size of the plant by building a mirror image of the existing facility and the footprint was laid out with that in mind.

Marquis Energy planned for an expansion at the Hennepin, Ill., plant pictured here, making room in the original footprint. 

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2011/09/13154955037298.jpg

A good news story in the ethanol industry has hit a speed bump. Marquis Energy LLC has announced its pulling back on a planned project to double the size of its 140 MMgy ethanol plant in Hennepin, Ill., due to a tax assessment dispute. 

Marquis Energy puts expansion on hold due to tax dispute

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