In April of 2010, local land owners met at the Depot Civic and Cultural Center to learn how they could get mesquite trees removed from their property at no cost and about a possible biomass gasification power plant that might be located in Brownwood. Two years later, no plant has been built and landowners became a little curious where the company was regarding its plans for Brownwood.
At the time, Mesquite Fuels and Agriculture was the company over the project, and its Chief Operating Officer was Jack Lauterbach. Since 2010, Lauterbach has joined forces with Randall Terrell, to form a new company – Alternative Energy Development, LLC, which will take up where Mesquite Fuels and Agriculture left off.
Both Lauterbach and Terrell explained that the plan for the area has been two years in the making but that things are “beginning to gel” and soon the second phase of their business plan will begin, clearing land as soon as possible. The most exciting news they stated was that groundbreaking of the plant, in a slightly different form, will happen near the end of this year.What was to be a power plant, now will be a plant to produce biomass pellets from mesquite and cedar harvested from the area. This pellet product will be sold in various locations worldwide for wood stoves and for production of energy. These pellets produce a “greener” form of energy with a much smaller carbon footprint than coal, according to Terrell.
Contracts secured with local land owners by Mesquite Fuels, according to Lauterbach, will be honored by AED. These agreements will allow clearing the land of mesquite trees and cedar at no cost to the owner and use the wood as fuel.
“Speaking on behalf of AED, we plan to honor contracts with landowners and treat them right,” said Lauterbach. “We’re still very interested in harvesting rights.”
Terrell echoed that statement, “We have certain responsibilities to treat land owners right. We intend to do what we say we will do but some things have to happen.” He explained that the planning stages are well underway, and securing financing, securing a location, procuring enough harvesting rights and making arrangements with ports for shipping are also in the works and determine when the harvesting and building of the plant can begin.
“We have selected Brownwood as a site to build a plant,” said the company’s Chairman & President Jack Lauterbach. He said that Coleman and San Saba are also locations that the company is looking at for these production plants.
Locations for the plants are being selected using certain criteria, such as access to railroad, power, water, gas and roadways. Lauterbach stated that the three production plants can be built in the area for what one of the previously planned power plants would cost. The plans to build the power plant changed due to economic instability and changing marketplace of the wind and natural gas markets, making it harder to produce a cheaper form of energy. Production of the pellets for export is a more profitable endeavor according to Terrell and Lauterbach.
According to Terrell, North America is the biomass capital for the company. Harvesting these trees, which can be regrown within approximately 30 years, is much more beneficial than using coal which takes exponentially more time to produce. The lesser carbon footprint is very important to the company and to its potential clients, especially those in Europe where energy costs 150-200% than what it is in the United States.
These pellets can be used for wood burning stoves or as fuel for power plants using what is called a gasification process by roasting mesquite and juniper cedar wood then burning the gas that is emitted to generate electricity.
Lauterbach stated that AED is working to make this a long-term endeavor and investment in the Brownwood area.
“For us to invest in such a large capacity, it’s going to be long-term. We have to be ethical to land owners,” said Terrell. “We’re not here for the short-term, we are here for the long-term. Heritage and stewardship are very important to our business.”
Lauterbach agreed and explained that the plant will be a win-win for all involved. “It’s always been our intent to use local people. Our business plan is a win-win-win. We will create a business with a good profit, creating a new tax base for the community, employment for the community, and landowners get rid of invasive tree growth making it possible to increase cattle production. If we do this right, everyone wins. The more positive things we do, the better off we’ll all be.”
Terrell and Lauterbach stated that each plant will be capable of producing 135 tons of pellets per year. They would start out producing approximately 50 tons the first year and then increase production. The plants would employ approximately 12-17 locally and another 5 on equipment in the field. It is hoped that subcontracted local crews of 5-8 people could be used to clear land. There would also be 12-15 employees driving trucks to support production and shipping.
“It’s always been our intent to use local people,” said Terrell.
Lauterbach stated that he has been working on this project for nearly six years full time and that now there are four others working full time with him to make it a reality.
“There are so many positives to this plan, that’s why we won’t give up,” said Lauterbach. “The time is right.”
As soon as final plant site selection is completed, AED will host a town meeting to inform the public when the company will begin harvesting and be ready to break ground on the plant.
Pictured above harvested mesquite bundles are moved on land south of Brownwood during testing by Mesquite Fuels and Agriculture.
