As the story goes, about 200 feet of Jefferson County timberland nearly cost the state what could one day be $10.5 billion in economic development investment.
Energy Security Partners CEO Roger Williams announced last week that a $3.5 billion natural gas-to-liquid project was a go for land about 10 miles north of Pine Bluff. Louisiana was, at one time, a possibility as well, but an easement issue was resolved and plans for Arkansas can now move forward, he explained to Rotary Club 99 in Little Rock.
Asked about those 200 acres, Williams didn’t want to term them as a deal-breaker. But he acknowledged that securing a direct path from the proposed plant site to the Arkansas River 4 miles away was, at the very least, a deal-clincher.
“We tried to find any other way around it, and I don’t want to go into all the details, but there wasn’t any other way,” Williams said. “We needed a straight shot to the Arkansas River. Without the easement we didn’t have that. Now the easement has been granted and we have a full, clear path.”
Easy access to the Arkansas River is crucial because that’s how the plant will ship its product. It’s also how construction equipment, including what Williams described as “the world’s largest crane,” will be transported to the site. Energy Security Partners, with help from the Economic Development Alliance for Jefferson County, needed nearly three years of work with the federal government to secure that tiny sliver of land near the Food and Drug Administration’s National Toxicology Research Center in Pine Bluff.
Williams’ story provides a tiny window into the world of economic development and the sort of detail that makes or breaks a project. If the first phase of Energy Security Partners’ plant is successful, there is talk of at least two additional phases, each totaling $3.5 billion.
Those would be, as of today, the largest economic development projects in the state’s history.
Arkansas, according to the most recently released Arkansas Economic Development Commission figures, has announced 148 job-creation projects representing $773 million in capital investment during the current fiscal year. In total, they’re expected to create 3,210 jobs with an average starting wage of $22.52.
Energy Security Partners is not included in those totals. When, or if, the project will be is unclear.
Both Arkansas Economic Development Commission Executive Director Mike Preston and Gov. Asa Hutchinson said they were aware of the project and have met with those involved, but the state has yet to commit any resources to it. Hutchinson mentioned in an email that a “significant due diligence process” is needed before any tax dollars are invested in a company.
Incentives for this type of development can be substantial.
Shandong Sun Paper Industry Joint Stock Co. of China announced in April a $1.3 billion project near Arkadelphia that could create 250 jobs once operational. That doesn’t include another 2,000 construction jobs over the nearly three years it will take to build the mill.
For its project, Sun Paper received a cash rebate equal to 5 percent of new payroll for 10 years, plus a sales tax refund on equipment, machinery and materials for the project and a combination of $65.5 million in grants, workforce training and loan funding through the state. Clark County, where Sun Paper will locate, chipped in $92 million in property tax abatement over 20 years and $10 million in infrastructure costs.
Energy Security Partners is touting the creation of 350 jobs once operational, plus more than 5,250 statewide during the three-year construction process.
Retired Gen. Wesley Clark, a former NATO commander and presidential candidate, and former U.S. Transportation Secretary Rodney Slater are involved in the project. Both have ties to the state and extensive experience in Washington. Andy Card, former White House chief of staff and Transportation secretary, is on the company’s board of directors.
Pine Bluff Mayor Debe Hollingsworth is hopeful the project comes together. She is thankful for the progress so far and aware of how thin the margin for error can be with a project of this size.
“We have to be patient and we have been patient,” Hollingsworth said. “Megaprojects like this can be a game-changer for communities, especially ours. These projects take time to develop. I haven’t heard of any potential road blocks, but I do know that the permitting process can be daunting. I do believe Mr. Williams and those involved have the wherewithal to make it come to fruition.”
If you have a tip, call Chris Bahn at (501) 378-3518 or email him at cbahn@arkansasonline.com