Verbio plans expansion after state approves annexation into Nevada
Seventy-four acres south of Verbio's renewable natural gas facility at 59219 Lincoln Highway will soon have access to several vital city resources, including water, electricity, and emergency services.
Verbio, located outside of Nevada, is the first industrial-scale renewable natural gas facility in North America using agricultural residues as its feedstock, according to the company's website.
Agricultural Relations and Administrative Manager of Verbio Holly Schnur said the company purchased the 74 acres with plans to expand its biorefinery and energy production.
"The purchase of the 74 acres of land was completed prior to being annexed into the city of Nevada," Schnur said. "Nevada understands and supports our vision of continuing to produce renewable fuels and pioneering green solutions."
The state of Iowa City Development Board met Wednesday, Jan. 10 and approved several annexation proposals, including the one in Nevada.
Verbio hasn't revealed any immediate plans for the annexed land, though they could use it as potential shop space and storage for agricultural equipment. Construction of an electrical substation or other potential industrial processes and renewable energy production is also possible.
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Verbio's Iowa facility is less than 2 years old
Verbio's $115 million Nevada facility opened in the spring of 2022 and was predicted to produce nearly 19 million gallons of ethanol each year and 60 million gallons of corn-based ethanol.
Iowa was the leading U.S. ethanol producer in 2022 when the facility opened.
"No other company in the U.S. is making renewable natural gas using farm residue at an industrial scale," Claus Sauter, CEO of Verbio AG told the Des Moines Register in 2022. Verbio AG is the publicly traded German company that is the parent of Verbio Nevada.
Sauter said Verbio planned to buy 100,000 tons of the crop residue, known as corn stover, annually from central Iowa farmers, as well as 20 million bushels of corn to make ethanol.
When it opened in 2022, the Verbio facility in Nevada employed 50 people and was expected to double in size by the end of 2023.
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Improved access to resources
The annexation of Verbio's Story County land was essential for future growth and helped cement its move to Iowa, one of Verbio's two North American production facilities.
Nevada Economic Development executive director Brenda Dryer said Verbio's purchase agreement included a pre-approved annex stipulation.
"A condition of their purchase was that it could be annexed into the city and ultimately be served with land and sewer, which it would have to be within city limits to have," Dryer said. "The land purchase is a step in a long-term growth plan."
Verbio will now receive city services such as police, fire, water, and sewage in exchange for the company's property taxes, which now funnel into the city.
"If you're running a business, you're going to want access to water and sewer," Dryer said. "That's why if they were going to purchase the land and it couldn't be annexed into the city, they weren't interested. They were only interested if the land long-term could be served with city services should they decide to expand on that property."
Celia Brocker is a government, crime, political and education reporter for the Ames Tribune. She can be reached at CBrocker@gannett.com.
This article originally appeared on Ames Tribune: Verbio biorefinery in Neveda plans long-term growth
