Pellet bluff

Over time, we got a lot smarter and better. The snake oil types have gotten up and left because they believe there is a better scam out there somewhere. – Grant Tennille, 2014

Grant Tennille, executive director of the Arkansas Economic Development Commission (AEDC), a proponent of biomass energy, was concerned with the success of wood pellet projects in Arkansas. “There were quite a few shady characters floating out there in the world,” he said.

According to a 2014 business report, “Arkansas’ burgeoning biomass industry got a big boost when in the space of 30 days two privately held investor groups announced multi-million-dollar projects to produce commercially viable fuel from the state’s vast supply of forest dregs.” Biomass, fiber, fuel, and dregs are inappropriate and painful words to someone who deeply cares for forests. Zilkha Biomass announced a $90 million pellet mill near Monticello, and Highland Pellets a $130 million mill near Pine Bluff. Highland promised to create 35 direct jobs and 482 trucker jobs. Pine Bluff anticipated $86 million per year for the local economy. It seemed too good to be true.

Lost in the forest

Arkansas foresters don’t understand forest ecosystems, and like US Secretary of the Interior Ryan Zinke, ignore the climate emergency. Please see, “The Arkansas Timber Story,” on YouTube.

The Sahara Desert, an area the size of the United States, used to be a tropical forest. Today it is mostly uninhabitable, with oppressively hot temperatures and deadly sandstorms, without soil, trees, shade, water, rain or birds. Genetically engineered pine plantations are intrusive crops, not forests. Choosing to clear cut the forests has deadly consequences.

Zilkha’s departure is a red flag

Grant Tennille had ample reason to be concerned. In July 2018, Zilkha shutdown Monticello due to low demand. Why build pellet mills without reliable demand?

Zilkha is well known in the UK. “Chris Huhne one-time UK Energy Secretary was forced to resign after he was jailed for perverting the course of justice. While in office, Huhne supported payments to Drax for burning wood pellets rather than coal. Three months after he was released from prison, he became European Chairman of Zilkha Biomass,” a UK report read. Zilkha Biomass had several pellet mills in the Southeast, it was a major player in the market, and is now no longer in business.

The bizarre saga of Highland Pellets

How is a $130 million project now valued at $230 million? Let’s follow the money. Pine Bluff gave Highland $500,000. The Arkansas Teachers Retirement System invested $25 million. Then Highland got a $26 million loan from ATRS. Finally, Highland got a $150 million loan from ATRS. Highland has $201 million from ATRS for a $130 million project, so who really owns the mill?

Highland Pellets South, a division of Highland pellets, plans to build two mills similar to the Pine Bluff mill, hoping for better results. The land has been purchased and the Army Corps of Engineers is reviewing a request to destroy wetlands during construction. Enterprise, Mississippi and Stephens, Arkansas, are the mill sites.

Arkansas corporate welfare

AEDC needs a tour of Flint, Michigan. Arkansas ignores the unique beauty of the Natural State and the threats of a hot planet. AEDC seeks high-energy, high-carbon, industrial manufacturing jobs.

AEDC looks for super projects and headcount. Foreign investors look for high-returns with low or no-money-down, cheap electricity, lax environmental and worker safety regulations and community development support. Southeastern states openly offer ineffective county, state, and federal subsidies disguised as incentives. The high costs of access roads, railroad spurs, and other project-specific infrastructure are paid with our taxes.

Arkansas ignores the climate emergency

Arkansas is choosing a high-carbon economy over a green economy. Arkansas ignores public health, education, investment in local communities, safe roads, and quality of life. AEDC ignores forest carbon offsets, the best and highest use of standing forests, and green tourist revenues.

Billions of dollars will be needed to rebuild our highways, bridges, water and sewer systems, and other critical infrastructure. Burning money and the forests is irresponsible. Time to replace the red clowns and decide our future.

Dr. Luis Contreras