Ergon Biofuels and Gavilon enter into agreement

Ergon Biofuels, a subsidiary of Ergon, a privately held company that operates under six primary business segments (refining and markets; asphalt and emulsions; transportation and teminaling; oil and gas; real estate; and corporate and other) has entered into a comprehensive services arrangement with logistics company Gavilon to originate and market grain at the company's Mississippi facility in the US.

Under the terms of the agreement, Gavilon will operate the 3.2 million bushel warehouse at the Ergon Biofuels facility and begin buying corn, soyabeans, milo and soft red wheat from area producers in the near future.

The strategic arrangement between these two companies will also support the opening of the ethanol plant located on site. Ergon Biofuels will own and operate the plant and market the ethanol and corn oil. Gavilon will supply feedstocks to the 65 million gallon per year facility and market certain offtake, including dried distiller's grain with solubles for Ergon Biofuels. The plant is scheduled to reopen in May.

 

SOURCE: Ergon