Alcester Union & Hudsonite Online

BERESFORD – After months of being accused of being too secretive, Hyperion Resources officials gave the public a chance to ask questions about the proposed energy center they would like to build in Union County, and area residents showed up in droves. The open house-style presentation began at 6:00 p.m. Monday in the Beresford Community Center, and dozens of people showed up before that. By 7:00 p.m. more than 200 people had signed in.

Hyperion representatives and company officials were on hand to answer questions about the proposed energy center in a room surrounded by tables set up with large, glossy presentations containing information on different aspects of the proposed energy center, from economic impact to how the refining process will work.

Both opponents and proponents of the proposed energy center were on hand, but most of the people there were just looking for answers to their questions. Law enforcement was also on hand – just in case.

Last week Hyperion officials filed a massive 193-page zoning change request with the Union County Planning and Zoning Commission for the construction of an energy center they would like to build southeast of Spink. Although the company has purchased options on approximately 10,000 acres of land in the area, the actual footprint of the proposed facility will cover approximately 3,900 acres. If the planning and zoning board approves the request, it will move on to the Union County Commission for their approval.

If the Union County Commission approves the request, Hyperion will need to apply for a number of state and federal permits before construction can begin, a process that will probably take at least a year before all permits are issued.

In the meantime, it is likely that opponents of the proposed facility will try to force the zoning change to a public vote. Hyperion officials have already said they will likely do the same because they want to build a facility in an area where they are welcomed.

If things fall together for Hyperion and construction begins, it will be the largest construction project in state history. Some analysts say that, dollar-wise, it will be the largest construction project in the United States, second only to the “Big Dig” tunnel system in Boston. Hyperion officials estimate the facility will take four years to construct, at a cost of between $8 and $10 billion.

When completed the energy center will convert 400,000 barrels a day of Canadian crude oil into gasoline, diesel fuel and aviation fuel. Most of the byproducts will be consumed by the on-site power plant to produce hydrogen, steam and electricity for the refinery.

The plant will operate 24-hours-a-day, 7-days-a-week to produce 190,000 barrels of ultra low sulfur gasoline, 160,000 barrels of ultra low sulfur diesel fuel, and 40,000 barrels of ultra low sulfur aviation fuel every day.

Many of those in attendance Monday night gathered around the display concerning the environmental impact of the proposed energy center. The Hyperion official on hand at that display said that the new energy center would produce a much lower level of pollutants than other refineries due to the use of modern technology that allows most of the pollutants to be captured.

He stated that the energy center will produce less than 2,500 tons of pollutants per year, which is 1/30th the amount produced by MidAmerican Energy’s Port Neal power plant south of Sioux City, and 1/60th that of the Big Stone power plant near Milbank.

Hyperion officials say that virtually all of the sulfur smell usually associated with oil refineries will be eliminated, and only those with “the most sensitive noses” will be able to detect a sulfur smell. The majority of the sulfur byproduct will be captured and stored in rail cars inside buildings at the plant.

Hyperion says that their proposed facility will produce 80% lower emissions than oil refineries in California, a state that has some of the most stringent air quality regulations in the nation.

Two other issues that company officials looked at were light pollution and the use of “flares” to burn off excess vapors. Lighting at the facility will be computer controlled in a “when-needed, where-needed” design, with directional lighting pointing down.

The facility will not use “flares” – tall stacks that burn off excess vapors - commonly associated with oil refineries. The facility will have “emergency flares” that officials say will probably only need to be used once or twice a year.

The energy center will also have its own security force as regulated by the Department of Homeland Security, and a full-time fire department on-site.

Others on hand at the forum worried about the amount of water that will be used at the proposed energy center. Hyperion officials estimate the facility will use between 8 and 12 million gallons of Missouri River water a day for processing, which will come from shallow wells near the river. Half of the water will evaporate during the refining process, while 26% will be converted to hydrogen. The remaining 24% will be cleaned and returned back to the river.

If the facility uses 10 million gallons of water per day, it equates to 1/20th of 1% of the total daily flow rate of the Missouri River.

Company officials say that the approximately 500 acres of land they purchased near Elk Point where the wells will be located will also be used for public access, waterfowl habitat and a wildlife area.

The economic impact of the proposed energy center was also a hot topic at the forum Monday night. Hyperion officials estimate that the proposed energy center will generate $13.7 billion in annual economic activity, $66.2 million in state sales tax annually, and $8.4 million in county revenue annually.

The energy center will be located in the Elk Point-Jefferson school district, which could see an estimated $20.4million in annual property tax revenue, up from approximately $5 million.

The energy center will employ 1,826 people in a variety of jobs from engineers to pipe fitters to lab technicians, maintenance, administration, security and other positions.

Hyperion announced that they would use a “Local First” program in an effort to employ local people to the maximum extent possible, and expect that the majority of the jobs will be performed by people living within a one hour commute from the facility.

Company officials have also said they will offer technical training programs for advanced trades and skills, and will work with South Dakota colleges, universities and technical schools in research and development initiatives.

The construction phase of the project will take four years with an average of 4,500 workers. Temporary housing will also be built at the site for most of the construction workers, which will make the site one of the largest “communities” in the county during the construction phase.

Informational meetings were also held at the Dakota Valley Elementary School on Tuesday night, and the Elk Point-Jefferson High School on Wednesday night.

A copy of the zoning ordinance change request can be found here. A copy of the proposed site map can be found here. More information can be found on Hyperion’s website at www.hyperionec.com.

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