By Moses Leos III
An estimated $50 million operation could make its way to Buda within the next calendar year.
Flint Hills Resources (FHR), which has refining, chemical and biofuel operations in Texas and the Midwest, is moving forward with its project to build the first ethanol terminal in Texas in Buda.
According to an FHR press release, the company expects to begin construction on the ethanol terminal this month, with the project in operation by December 2016.
Ethanol is a type of alcohol used in gasoline that is transported by freight rail or by trucks.
An ethanol terminal, according to Altenhoff, is used as a central hub for distribution of the product.
Deanna Altenhoff, spokesperson for FHR, said in an emailed response that the facility’s proposed site is located along FM 2770 near the Union Pacific Railroad. Buda Mayor Todd Ruge said the property where the proposed facility is to be located is currently subject to annexation by the city.
Altenhoff said the facility will be “small in size but will facilitate an important part of gasoline production in Texas.” She said the company does not disclose its investment amounts, nor did she specify the size of the project. In a press release, FHR will employ over 100 contractors for the construction of the facility.
FHR currently owns and operates refined products terminals, which distribute low-sulfur gasoline and diesel and jet fuel, in several Texas cities. Those include San Antonio, Bastrop and Austin. The Buda facility will be the first to disperse ethanol.
The company, based out of Wichita, KS, has more than 5,000 employees and is a wholly owned subsidiary of Koch Industries, Inc.
“Buda is an efficient distribution hub to our existing Texas fuel terminals and this centralized location will enable us to meet the ethanol demands of our customers throughout Central and South Texas,” said Nathan Brubaker, Texas marketing general manager for Flint Hills Resources, said in a press release.
Buda Mayor Todd Ruge said the project came to his attention two months ago, but it has been in the works “for much longer than that.” According to Ruge, a formal presentation of the project has not been given to the Buda City Council.
Altenhoff said FHR has provided information regarding the project to Buda, Hays County, which owns the property, and “appropriate officials.” She added that FHR has not requested any Chapter 380 agreements or incentives from the city.
FHR has submitted a site development plan for its project, according to Ruge.
He added the land where the proposed facility could be located is currently zoned agricultural (AG). Should the city annex the property, Buda would be able place the proper zoning that fits the business.
He added that the city has “little to do with” the project, but that it will be in the city limits and is subject to taxation.
The project, Ruge said, would generate “positive income flow” for the city, and could bring up to 20-plus employees to the local market.
“We welcome them with open arms; they will be a valuable asset to our community,” Ruge said.
