Advanced BioEnergy to sell Neb. plant to Flint Hills
Advanced BioEnergy LLC has announced plans to sell its Fairmont, Neb., ethanol plant to Wichita, Kan.-based Flint Hills Resources. The transaction is expected to close later this year and is subject to regulatory approval.
The Fairmont ethanol plant began production in October 2007 With an annual capacity of more than 115 million gallons, the plant produces more than 320,000 tons of dried distillers grains each year, as well as more than18 million pounds of non-food grade corn oil. The plant has about 50 employees.
Advanced BioEnergy elected to engage in a process to solicit interest from potential buyers of the Fairmont facility after being approached by a potential buyer earlier this year. The company believes the transaction will be beneficial to all parties including its more than 1,200 unit holders.
“The announcement today underscores the value we have created over the past four years developing the Fairmont plant into a superior ethanol production asset,” said Richard Peterson, CEO of Advanced BioEnergy. “Maximizing the value of our business has been a priority in the face of continuing market consolidation and compressed operating margins as the industry works toward long-term alignment of supply and demand.”
Advanced BioEnergy will continue to operate its two ethanol plants in Huron and Aberdeen, S.D., after the transaction closes.
Flint Hills Resources is a leading refining, chemicals and biofuels company with operations primarily in the Midwest, Texas and Alaska. Flint Hills Resources' biofuels business includes four Iowa ethanol plants with a combined capacity of 435 million gallons, a biodiesel plant in Texas, and investments in biofuels technology and feedstock development.
“We feel very fortunate to add Advanced BioEnergy’s Fairmont plant to our biofuel business,” said Brad Razook, president and CEO of Flint Hills Resources. “This is a best-in-class operation located in one of the highest corn-producing regions in Nebraska.”
“We look forward to welcoming the Fairmont team to Flint Hills Resources,” Razook said. “We share the same high standards for customer service, operations excellence and compliance, so we expect a very smooth transition.”
Flint Hills Resources is an indirect, wholly owned subsidiary of Koch Industries Inc., which is one of the largest private companies in the world.