Fuel-Cell Manufacturer Bids for Idled Lawrence, Kan., Fertilizer Plant
By Chad Lawhorn, Journal-World, Lawrence, Kan. Knight Ridder/Tribune Business News
Apr. 15--A deal is in the works to convert Lawrence's vacant Farmland Industries fertilizer plant into a "cutting-edge" manufacturing facility for hydrogen fuel cells.
Farmland officials are optimistic about the possible sale, said Tim
Daugherty, vice president of administration for Farmland Industries.
"From what I can see and understand, it looks like he has his ducks
pretty well lined up," Daugherty said. "It looks like they have been
able to do everything they have told us they could do."
Hydrogen fuel cells are an emerging technology that could allow vehicles to
operate on clean-burning hydrogen rather than gasoline. President Bush in his
2003 State of the Union address called for a "national commitment" to
hydrogen technology as a way to reduce pollution and limit the country's
dependence on foreign oil. Billings thinks that makes now the right time to jump
into the manufacturing of fuel cells.
"I've basically had a research and development company that has been
working this for more than 25 years, but now we really want to move into the
manufacturing stage," Billings said.
Billings said he believed a hydrogen cell manufacturing plant could produce
100 jobs for the area during the next two years and could grow to 700 to 800
jobs by the end of the decade, depending on how quickly Detroit automakers adopt
the technology.
The deal -- financial terms of which haven't been disclosed -- is far from
complete.
"It is a multimillion-dollar deal. I really can't say more than that,
but it is a big number," Billings said.
Both Billings and Farmland are in discussions with the Kansas Department of
Health and Environment and the Environmental Protection Agency. Both agencies
would have to approve a plan for Billings to continue cleanup efforts at the
site, which suffered environmental damage while it was used as a fertilizer
plant from 1954 to 2001, when it closed amid an industry downturn.
Billings said he was optimistic about gaining the necessary approval. He said
he already had secured financing for the initial purchase.
"We feel like we're real close to doing it," Billings said.
Billings said he soon hoped to begin talks with area officials about the
project.
"We're trying to get ourselves plugged into the local community to make
sure that what we want to do fits in with what the community wants to do,"
Billings said. "That is very important to us."
Lynn Parman, vice president of economic development for the Lawrence Chamber
of Commerce, said she had not spoken to Billings but was aware of his interest
in the property. Parman said she needed to learn more about the potential
project before she could comment on it.
"I think it is healthy to have the private sector interested,"
Parman said.
She also said she hoped Lawrence and Douglas County officials would continue
to explore the possibility of acquiring the site, which could be used to expand
the adjacent East Hills Business Park.
"I do think the city and county's focus is right on track," Parman
said.
The city and county have hired a consultant to study the environmental
condition of the property. That report is expected to be completed in the next
two weeks.
Billings said he also had hired a consultant to examine the site and was
comfortable with the plan that Farmland had used to control nitrate levels in
the groundwater beneath the plant.
"We've looked into it, and we take the environmental responsibilities
out there very seriously," Billings said. "We don't want to walk into
a can of worms, but we think it is a manageable situation."
Billings said he hoped he could complete a purchase agreement with Farmland
by the end of April. Final approval for a sale would come from the court
overseeing Farmland's bankruptcy. As part of the bankruptcy process, the court
allows other interested parties to bid on the property.
Longtime researcher Billings has been researching fuel cell technology for
about 25 years through his company, Billings Energy Corp. According to a 2003
Time magazine article, Billings in 1977 drove a hydrogen-powered Cadillac in
President Carter's inauguration parade. And in 1991, Billings converted a
battery-operated Ford Fiesta donated by the Postal Service into what he claimed
was the world's first hydrogen-powered fuel-cell vehicle.
He said he became interested in the Farmland plant in October when he heard
about parts and equipment at the plant being auctioned off.
The plant being along a major pipeline and in a university community piqued
his interest, he said.
The plant has an 800-foot building that Billings said could house an assembly
line and office building to serve as the company's headquarters.
"It is great that it is all just a stone's throw away from the
university because we're a technical company that will need technical
people," Billings said.
Daugherty said other parties had expressed interest in the plant, but only
Billings had signed a letter of intent. Daugherty declined to name any of the
other parties. He said Farmland officials were excited about Billings' plans.
"I feel pretty good about it," Daugherty said. "One of the
real positive things he brings to the table is that he has a plan to take an
industrial complex and bring it back to life.
"It is definitely cutting-edge, but if it works, it will highlight the
entire community as a cutting-edge community," Billings said.
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