President Dan O’Connor, says a land lease has been locked up and a commercial bank is handling most private investments. The contractor, Guelph-area based North America Construction, is committed to the project even if there’s a delay. All the permits are in place but one. O’Connor expects to have the Ministry of Environment permit within a few months. But even if that’s delayed the contractor has agreed to wait, he said.

O’Connor launched his own private investment drive this month and expects to have all money in hand before April.

The big question on most farmers’ minds is: How come I’ve never heard of you guys?

"That was our strategy from the beginning," O’Connor said. "We wanted to come to market with a complete project."

He said that they have seen a number of promises about ethanol plants that never materialized. Their plan took 18 months to prepare. In reference to the defunct Seaway Grain Processors, he said that the market is different now, as there is more money available for projects.

"I’m pretty impressed with the presentation," said Prince Edward County crop farmer Lloyd Crowe, who also invested in Seaway. Crowe was on hand to hear O’Connor’s pitch at a Trenton meeting in early January. "It looks like all the ducks are lined up. They’re just looking for investors."

The project requires $185 million and would generate 210 million litres of ethanol a year. The hope is to raise $15 million to $25 million from area farmers and investors, O’Connor said. Another $25 million would be guaranteed through a federal grant. Toronto’s Commercial Capital Corporation plans to wrap up $135 million in investments by March 31.

To avoid investment chill, O’Connor says all local investments will be held in an escrow account and must be put toward building the plant in 2008 or money will be returned, including interest, before the end of December. "My whole drive is to get this down as quickly as possible and spend as little money as possible," O’Connor said. "The window of opportunity is small."

Here’s how the investment would work: A farmer invests, say, $10,000 for 10,000 preferred shares in the project. It would begin to reap benefits after five years when the debt has been paid down to the bank. The ethanol company would buy back the preferred shares and distribute the five per cent dividend that has been accruing on the preferred share. It would also return 10,000 common shares to the investor. At that point the investor has the initial investment back plus a five per cent dividend and the common shares would begin to return dividends on an annual basis. The company anticipates returns between 18 to 22 per cent per year, which O’Connor says is based on a conservative estimate. There is no guarantee of the dividend return but the forecasting is based on 50 cents-a-litre ethanol. The ethanol price now is hovering at 62-cents a litre.

O’Connor grew up on a dairy farm now operated by brothers Sean and Kelly. He and his brothers began kicking around ideas for an agricultural investment after O’Connor sold the high-tech company he started and moved back to the family dairy farm near Ajax. Another brother, Tim, runs a broiler operation near Oshawa. The parents and all six brothers are investors in the ethanol project.

"I’m well aware of the state of agriculture today," O’Connor said. "It’s a rare opportunity to be a processor and not just a supplier."

The U.S. government recently passed a bill that would almost guarantee a dramatic increase in ethanol consumption, while decreasing depency on oil. O’Connor says he sees the U.S. drive for green energy based as much or more on a desire to be less dependant on Middle East oil than on environmental concerns. Two powerful reasons provide a "perfect storm" for ethanol, he said.

O’Connor will speak at the corn producers region 4 meeting at the Trenton Holiday Inn Jan. 28. The meeting runs 10:30 a.m. to 3 p.m. Speak to O’Connor directly at 416-940-0001