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Tuesday,  November 19 , 2024

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News / Business

Port officials OK potential deal with SkyNRG to build clean aviation fuel facility

By Julia Eastham, Walla Walla Union-Bulletin
Published: November 19, 2024, 8:45am

WALLA WALLA — The Wallula Gap Business Park currently is nothing more than a bare plot of land, but it’s potentially getting another development.

Port of Walla Walla Commissioners voted on Thursday, Nov. 14, to enter into a purchase and sale agreement with SkyNRG to sell part of the ever-growing business park.

SkyNRG, a Netherlands-based company with a focus on creating sustainable aviation fuel, reached out to the Port of Walla Walla to present its plans for a new clean aviation fuel facility at the business park.

The project, titled Wigeon, was introduced to the port in November 2022 during a commission meeting.

Originally, the company was interested in creating a facility at the port’s nearby Stearns Kelly property and Dodd Road Industrial Park. The two properties combined sit on about 159 acres and are defined as heavy industrial sites.

In that 2022 meeting, the port voted to enter into a purchase and sale agreement with SkyNRG. Since then, the company has completed what is known as “site due diligence work” on the two properties.

For Port Commissioner Amy Schwab, the work completed by SkyNRG played a role in her decision to agree to terminate the 2022 purchase and sale agreement and enter into a new agreement.

“We have the due diligence that (SkyNRG) paid for … we benefit from that. We’ve not lost anything in this deal,” Schwab said.

Now two years later the company presented a letter to the port asking to acquire 165 acres at the Wallula Gap Business Park.

The business park has gained attention recently for its various potential developments. The 1,280-acre property could soon include a large data center and a factory for sustainable building installation.

Neighboring the potential data center, SkyNRG would build on three lots. Each acre is estimated to be worth $65,000, according to the port’s staff report from Thursday’s meeting. The report said the site has been reviewed and the three lots could sell for a total of $10.7 million.

SkyNRG informed the port in the letter about its hope to move to the Wallula Gap Business Park. It said the company decided to try buying the land because it has “several advantages” over the other two sites.

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These advantages include fewer environmental challenges, impact issues and county-designated critical areas. The challenges listed in the letter are Dodd Road and Stearn Kelly’s steep slopes, surrounding roads and power lines and the railroad separating the two properties.

Additionally, SkyNRG said the business park has advantages for construction and operations.

Pat Reay, the port’s executive director, said during Thursday’s meeting that the three plots of land, if sold, would create and develop more rail access at the business park.

“The rail is going to come along right here, so lot six is really the key to rail access to this subdivision,” he said.

Reay also said the port divided the business park’s subdivisions without any specific tenants in mind and if needed, the port could make adjustments to the size and scale of each plot.

“If we needed to make some adjustments, we have the ability to make boundary line adjustments rather than go through another planning process,” he said.

Moving forward, the port will have the purchase and sale agreement and any other necessary documents reviewed by a legal counsel. SkyNRG also will undergo site analysis for the newly proposed plots and has until December 2026 to complete it

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