Rex resumes production at NuGen Energy plant in South Dakota

By Erin Voegele | June 29, 2020

Rex American Resources Corp. filed an 8-K with the U.S. Securities and Exchange Commission on June 29 announcing it has resumed production at its NuGen Energy facility, a 150 MMgy ethanol plant located in Marion, South Dakota.

During a March 26 earnings call, Zafar Rizvi, CEO of Rex, said the NuGen facility had struggled to obtain an adequate supply of corn and indicated the facility had been idle since October 2019. Also during that call, Rizvi said the company had decided to keep the plant at hard idle until the threat of COVID-19 was reduced and gross margin increased.

The 8-K filed by Rex on June 29 did not provide any details regarding the company’s decision to bring the NuGen facility back online.

Rex also recently resumed production at its One Earth Energy ethanol plant, a 150 MMgy ethanol plant located in Gibson City, Illinois. Stuart Rose, executive chairman of Rex, announced during a May 28 earnings call that the plant had resumed operations after idling earlier this year due to market impacts caused by the COVID-19 pandemic.

Rex currently holds ownership interest in six ethanol plants, including 75.2 percent ownership interest in Gibson City, Illinois-based One Earth Energy LLC, 99.5 percent ownership interest in Marion, South Dakota-based NuGen Energy LLC, 10.3 percent ownership interest in West Burlington, Iowa-based Big River Resources West Burlington LLC, 10.3 percent ownership interest in Galva, Illinois-based Big River Resources Galva LLC, 5.7 percent ownership interest in Dyersville, Iowa-based Big River United Energy LLC, and 10.3 percent ownership interest in Boyceville, Wisconsin-based Big River Resources Boyceville LLC.