Aemetis acquires partially complete ethanol plant in Kansas

By Erin Voegele | January 14, 2020

Aemetis Inc. has purchased a partially complete ethanol plant in Kansas. While the company previously said it would convert the facility to cellulosic production, Aemetis Chairman and CEO Eric McAfee said there are currently no plans to build at the site.   

Aemetis filed an 8-K with the U.S. Securities and Exchange Commission on July 14, 2017, announcing it had entered into an option agreement to purchase the capital stock of Goodland Advanced Fuels Inc., a company that owns a partially complete ethanol plant located in Goodland, Kansas. Construction on the 30 MMgy New Goodland Energy Center began in mid-2012 but was never completed.

A separate 8-K filed by Aemetis on Jan. 7 explains that the company exercised the July 2017 option agreement to purchase the capital stock of Goodland Advanced Fuels Inc. for a purchase price equal to 1 cent per share, and for an aggregate consideration of $10, purchased all of the capital stock of the company.

In its third quarter 2019 financial report filed with the SEC on Nov. 14, Aemetis briefly discussed its option to purchase the Goodland plant. In that filing, the company said “upon exercise of the option, we plan to deploy a cellulosic ethanol technology to the Goodland plant.” That filing also indicated the Goodland plant “is partially completed and is not ready for operation.”

Any previous plans to further develop the Goodland plant site, however, are currently on hold. McAfee said the company do not have current plans to build at the site and is awaiting the federal government’s full and consistent enforcement of existing regulations, including the Renewable Fuel Standard, before making further investment. He said, “as a result, the domestic job creation, reduction in imported crude oil, cleaner air, expanded market for domestic ag project and improved economics in Kansas will be delayed until the White House decides that additional biorefineries should be built.”