SunEthanol eyes move to Boston

By Scott Merzbach
Staff Writer

Published on July 11, 2008

Local developers have put forth two proposals to build a research lab for a much-sought-after biofuel company, but outside pressures seem to make it likely that the firm will leave Amherst for the Hub.

Town Manager Larry Shaffer told the Select Board Monday that he has been in regular contact with outgoing CEO Jef Sharp and company partner Steve Rogers in hopes that SunEthanol, which was founded in Amherst in October 2006, won't depart. SunEthanol is located in 1,500 square feet of space on University Drive, where it grows its patented plant-eating "Q microbe."

<h4>Everything in his power</h4>

Though Shaffer said he is doing everything in his power to keep the company in Amherst, a move closer to Boston appears to be a more likely outcome.

"From the town of Amherst's perspective, that would be a result that would not bode well for us," Shaffer said.

Proposals from property owners and developers, Shaffer said, include reusing existing space and building new space to provide the 15,000-square-foot laboratory that SunEthanol needs. Shaffer said these proposals were brought to him and that he didn't do any formal solicitation.

Shaffer said there is "tremendous pressure as a startup to move expeditiously." SunEthanol needs to expand by the end of the calendar year, to at least 5,000 square feet, but will have to be in a place that can expand rapidly after that to 15,000 square feet, he said.

"It's very tough," Shaffer said. "Our options are not as strong as we'd like them to be."

Being closer to Boston is logical. "That's where the world would expect you to locate," he said.But Amherst needs to find a way to make itself equally attractive.

"It's absolutely critical that the town of Amherst demonstrate its ability to accommodate a startup enterprise like this," Shaffer said.

"It's essential to get established in the field, and then it's much easier for the second, third and fourth enterprise to come into the community."

Shaffer said he plans to meet with SunEthanol's new CEO, William Frey, later this month.

Select Board Chairman Gerry Weiss praised Shaffer for all the work he's done so far, observing that Amherst has lost companies in the past, such as National Evaluation Systems, which is now in Hadley.

Weiss said if SunEthanol does move, it would demonstrate that even the best efforts might not work. These efforts have included zoning changes making it easier to conduct research and development in certain districts.

Scott Merzbach can be reached at smerzbach@gazettenet.com.