AUBURN – Safe Handling officially threw down the welcome mat for ethanol Thursday, unveiling its 150-acre terminal designed to handle the distribution of the alternative biofuel in Maine and beyond.

“This is an important investment in terms of infrastructure in our state,” said Gov. John Baldacci to Safe Handling CEO Ford Reiche. “This is another good job, Ford. Congratulations.”

Baldacci was among the approximately 60 people gathered for a chilly ceremonial ribbon- cutting at the 445 Lewiston Junction Road operation. Behind the governor were tanker cars waiting on rails to convey ethanol from the Midwest to parts unknown. The rail-to-truck transloading terminal is the first in the state to handle ethanol, and a critical step in getting ethanol-blended gasoline to retail stations.

“As with biodeisel, we’ve made the first move, and now fuel wholesalers can make their investments knowing that if they can blend ethanol into their gasoline, we can supply it,” Reiche said.

The company sunk $500,000 in upgrading the five rail sidings on its property that connect with the St. Lawrence and Atlantic and Canadian National railroads, plus another $125,000 on a specialized transfer pump. Other modifications include spill containment and fire suppression systems. Overall, about $3 million was invested in the terminal, including the property purchase from previous owner Bayshore Concrete.

The rail line is key in the delivery network, picking up corn-produced ethanol in the Midwest, then taking it to Chicago, on to Quebec and then to Auburn. Reiche said the terminal has the capacity to handle 180,000 gallons of ethanol a day.

“We’d love to see thousands of rail cars here,” said Roland Miller, economic development chief for the city. “The rail connections that allow for bulk deliveries mean we are offering savings and service as a distribution hub to the state and region.”

Reiche began planning for the terminal two years ago, when he purchased the property he named Port of Auburn and applied for permits from the city. It was a logical next step for the company, which already handles most of the biodeisel imported to Maine through its association with Sprague Energy.

But there’s more in store. An avowed environmentalist, Reiche has partnered with Red Shield Environmental and the University of Maine’s Forest Bioproducts Research Initiative to develop a biofuel from wood waste.

Long term, he hopes the cellulosic ethanol will be an affordable and renewable energy source for Maine and beyond.

“That’s the real excitement,” he said.

For now though, he’s waiting for fuel wholesalers to step forward and commit to blending ethanol with traditional gasoline. If that takes off, the terminal can be modified with storage tanks.

“Whatever the market determines,” said Reiche, noting the permits for 1½ million-gallon storage tanks are already in hand and Safe Handling would install more transfer pumpers if there’s the demand.

He took care to thank the city and state for help in getting the regulatory approval for the terminal, as well as Safe Handling’s rail partners and the research teams working on alternative fuels. He also tipped his cap to the Industrial Rail Access Program, a state program that makes public money available on a 1-to-1 match with private dollars in a competitive process.

“This is a wise use of public money,” said Reiche as he gazed at the terminal. “We’re ready to go.”