Officials have awarded state tax breaks to a European company that plans to open a biofuels plant at the site of a closed ethanol production facility near Nevada.
VERBIO is based in Germany. The Iowa Economic Development Authority Board has approved state tax benefits in support of the company’s plan to produce what’s called “renewable” natural gas. It will happen at the former Pioneer DuPont’s cellulosic ethanol facility near Nevada.
VERBIO has been making “biogas” since the summer of 2010 in Europe. The process involves fermenting corn stalks to ultimately produce methane. State officials say it will be the company’s first facility in North America and VERBIO plans to spend $35 million on the project.
DuPont has agreed to repay the State of Iowa $10.5 million for the incentives it received for the plant in 2011. The plant was shut down about a year ago, putting 90 people out of work. VERBIO’s contract with the state indicates it will employ 44 people at the plant after its recalibrated and at full production.
The Iowa Economic Development Authority board has also given tax breaks to support the expansion of the Elkhart Plastics plant in Atlantic. Company officials say 100 more people will be employed in Atlantic after the one million dollar project is completed. Elkhart Plastics makes custom coolers, water tank liners and other equipment for RVs and boats.