Advanced Bioenergy to sell 115mgy Fairmont plant

Biofuels, refining and chemicals company Flint Hills Resources is to acquire a 115 million gallon a year ethanol plant.

The plant currently belongs to Advanced Bioenergy, who chose to sell the plant following interest from a potential buyer earlier this year. The company believes the transaction, expected to close later this year, will be beneficial to all parties including its unit holders, of which there are more than 1,200.

In addition to ethanol, the plant also produces in excess of 320,000 tonnes a year of DDGS and over 18 million lbs of non-food grade corn oil. Fifty people work at the plant.

'The announcement underscores the value we have created over the past four years developing the Fairmont plant into a superior ethanol production asset,' says Richard Peterson, CEO of Advanced Bioenergy. 'Maximising the value of our business has been a priority in the face of continuing market consolidation and compressed operating margins as the industry works towards long-term alignment of supply and demand.'

Advanced Bioenergy will continue to operate its two ethanol plants in Huron and Aberdeen, South Dakota following the completion of the deal.

Brad Razook, Flint Hills Resources president and CEO describes the plant as a 'best-in-class operation located in one of the highest corn-producing regions in Nebraska'.

Flint Hills Resouces owns four Iowa-based ethanol production facilities which produce a total 435 million gallons a year, a biodiesel plant in Texas and investments in biofuels technology and feedstock development.