Ethanol plant to be built near Fergus Falls
Green Plains Renewable Energy, Inc. announced Jan. 10 it has signed an asset purchase agreement with Otter Tail Ag Enterprises, LLC to acquire its 55 million gallon per year capacity dry-mill ethanol plant near Fergus Falls.
The proposed transaction is anticipated to progress through a court-approved bankruptcy proceeding initiated by Otter Tail Ag Enterprises, LLC. If confirmed by the Bankruptcy Court, Green Plains' bid would then be considered the stalking horse in an asset auction to be held in the next 60 days. There can be no assurances that Green Plains' bid will be the winning bid among qualifying bids.
"We remain focused on our growth strategy of acquiring operating assets that expand our ethanol platform and contribute immediately to our financial results," said Todd Becker, president and CEO of Green Plains Renewable Energy. "If we are successful in the auction process, we believe our proven management capabilities will add value for all stakeholders."
If completed, the acquisition would increase Green Plains' ethanol production capacity by approximately 8 percent to an annual capacity of 712 million gallons. Green Plains plans to finance the transaction through a mix of available cash on hand and debt financing from existing lenders.
Green Plains Renewable Energy, Inc. is North America's fourth largest ethanol producer, operating a total of eight ethanol plants in Indiana, Iowa, Michigan, Nebraska and Tennessee with annual expected operating capacity totaling approximately 657 million gallons. Green Plains also markets and distributes ethanol for four third-party ethanol producers with annual expected operating capacity totaling approximately 360 million gallons. Green Plains owns 51 percent of Blendstar, LLC, a biofuel terminal operator which operates nine blending or terminaling facilities with approximately 495 million gallons per year of total throughput capacity in seven states in the south central United States. Green Plains operates grain storage facilities and complementary agronomy and petroleum businesses in Iowa, southern Minnesota and western Tennessee.