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Port lawsuit seeks delay: Empire State Ethanol sues to block development of biofuels plant during arbitration

Fri. September 25, 2009; Posted: 05:36 AM
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ALBANY, Sep 25, 2009 (Albany Times Union - McClatchy-Tribune Information Services via COMTEX) -- CWST | Quote | Chart | News | PowerRating -- Empire State Ethanol & Energy LLC is seeking a preliminary injunction in Albany County State Supreme Court to block development of a biofuels plant on 18 acres at the port while its lawsuit and arbitration move ahead.

Cooperstown-based Empire named the Albany Port District and Port Commission board, as well as port General Manager Richard Hendrick, Chairman Robert Cross, Albany Renewable Energy LLC, Bio-Pro Resources LLC, Casella Waste Systems Inc., Casella Renewable Systems LLC and Casella Albany Renewables LLC.

Attorney Linda R. Shaw said the latest filing was intended "to keep the status quo" while the federal case and arbitration progress.

The port commission had chosen a proposal by Albany Renewable Energy LLC to build a $350 million ethanol plant at the port over a competing proposal from Empire.

In January, port officials confirmed that Albany Renewable was talking with Rutland, Vt.-based Casella Waste about a possible waste-to-biofuels plant at the site.

Christopher Von Zwehl, CEO of Empire, had filed a lawsuit accusing Albany Renewable of stealing its idea for an ethanol plant. In March, a portion of Von Zwehl's suit was sent to arbitration by U.S. District Court Judge Gary Sharpe in Albany.

"We strongly disagree with Mr. Von Zwehl's position," Hendrick, the port general manager, said Thursday afternoon.

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