GREEN Plains Renewable Energy Inc. announced June 3 that it has signed a purchase agreement to acquire the membership interests of Choice Ethanol Holdings LLC, the entity that owns the former NEDAK Ethanol LLC ethanol plant in Atkinson, Neb., and an ethanol storage and loading facility about 15 miles east of the plant.
The dry-mill ethanol plant will add approximately 50 million gal. of operating capacity to Green Plains' current annual production capacity of 740 million gal.
The ethanol plant utilizes Delta-T processing technology. The ethanol storage facility holds approximately 24,000 barrels of ethanol and is located on the BNSF rail line.
"The acquisition of the plant in Atkinson expands our ethanol production platform and aligns with our ongoing strategy of growing our business and enhancing long-term shareholder value," Green Plains' president and chief executive officer Todd Becker said.
"The plant meets our disciplined acquisition criteria, and we have a deep understanding of this technology, size and geographic area. We believe we can rapidly improve the overall performance of this plant," he added.
Green Plains plans to staff and restart the plant within the next few weeks. Once the transaction closes, the company plans to begin installing corn oil extraction technology, which should be completed in the fourth quarter.
Completion of the transaction is subject to standard and customary closing conditions.
Carl Marks Advisory Group served as the financial adviser to Choice Ethanol Holdings.
Green Plains Renewable Energy is North America's fourth-largest ethanol producer. It markets and distributes approximately 1 billion gal. of ethanol annually and also owns and operates grain storage assets in the Corn Belt and biofuel terminals in the southern U.S.
Green Plains also is a joint venture partner in BioProcess Algae LLC, which was formed to commercialize advanced photo-bioreactor technologies for growing and harvesting algal biomass.