Dublin, Ireland [RenewableEnergyWorld.com] NTR’s ethanol investment and development arm, Green Plains Renewable Energy Inc., has signed definitive purchase agreements to acquire two ethanol plants in Nebraska. The addition of these plants will increase the company’s ethanol production capacity by 45%, from 330 million gallons per year to 480 million gallons, making it the fourth largest ethanol producer in North America.
Green Plains is acquiring all of the membership interests in two limited liability companies that own the ethanol plants located near Central City and Ord from a lender group lead by AgStar Financial Services for US $123.5 million. The Central City plant adds 100 million gallons and the Ord plant adds 50 million gallons of annual expected production capacity.
“The acquisition of the plants further lowers our cost of production and improves our ability to compete in the industry,” said Todd Becker, Green Plains’ president and CEO. “This purchase is consistent with our strategy to selectively acquire assets at attractive valuations that complement our vertically integrated business model from grain storage through ethanol production to blending and distribution. The Central City and Ord plants share the same process technology deployed at the majority of our plants, which should allow us to integrate them into our business with little disruption.”
Closing of the transactions is subject to standard conditions, including regulatory approvals and concurrent closing on the above described debt financing. The company anticipates closing the purchases and financings in June 2009 and expects to have the plants fully operational within 30-60 days after closing.