News that a biofuel company is likely to choose Gilroy as the
location for a commercial-scale, renewable jet fuel production
plant is the result of years of hard work by Gilroy officials
combined with our city’s desirable geography.
Hard work, location key factors in making Gilroy a biofuel hub

News that a biofuel company is likely to choose Gilroy as the location for a commercial-scale, renewable jet fuel production plant is the result of years of hard work by Gilroy officials combined with our city’s desirable geography.

Economic Development Corporation Chief Executive Officer Larry Cope has spent a lot of time and energy making the path as smooth as possible for the Solena Group and Rentech, the groups behind the effort to build the first-of-its-kind plant. They’ve suggested sites, made contact with appropriate utility and government officials, and sold Gilroy as a business-friendly community along the way.

If it comes to fruition, the plant will bring as many as 200 jobs to Gilroy – and not the low-paying service-oriented retail jobs that our city has so often attracted with the heavy emphasis on more and more outlying retail. In a nationwide time of layoffs and budget cuts, it’s refreshing to hear about possible new jobs and economic growth.

Our location and our active ag operations could fuel a boon

In the end, the selection of Gilroy has a lot to do with pursuit, perseverance and the three most important things in real estate: location, location, location. Gilroy is located near sources of agricultural and other biomass waste and customers for the plant’s end product, jet fuel. In addition to the major airports in both the San Francisco and Monterey Bay areas, Gilroy is close to many military facilities, which are under mandate to convert portions of their fleets to non-petroleum-based fuels.

But more than the jobs the biofuel plant brings, we’re excited about the prospect of Gilroy becoming a center for biofuel production. Many have said that the country’s current economic tailspin might be reversed by advances in green technology – wouldn’t it be great if Gilroy was at the epicenter of that? It’s hard to find something to criticize in the idea of turning agricultural waste and other biomass into fuel. It reduces the movement of materials into landfills and reduces our dependency on foreign oil. Burning biofuel instead of fossil-based fuels like coal and petroleum reduces carbon dioxide emissions.

NorCal Waste will hopefully be a positive player in our city’s quest

Finally, it reduces demand on corn and soybeans, which are currently used to produce ethanol and biofuel, which should ease price burdens on farmers and consumers.The biofuel plant is not a done deal – negotiations with NorCal Waste, the parent company to South Valley Disposal, must be concluded, $250 million financing must be settled, and planning and environmental hurdles must be overcome. Hopefully, NorCal Waste will aid our city in this very important quest to attract this first major green employer.

That said, Gilroy is well on the way to landing its first biofuel plant. That would be a laudable coup even more significant in this economic environment. Hopefully, this is the first of numerous green technology innovators who will set up shop in town. 

Act now

Check out the Gilroy Economic Development Corporation Web site at:

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