Ergon acquires total ownership of US ethanol facility

US-based petroleum-related business Ergon has acquired, through its Ergon Ethanol subsidiary, Bunge North America's interest in a previously joint-owned biofuels facility in Mississippi.

The move means Ergon Ethanol now owns 100% of the Bunge-Ergon Vicksburg plant and, as of 31 December 2013, it was renamed Ergon BioFuels. Financial terms were not disclosed but the move ends a six year collaboration between the two companies on this project.

The facility suspended production in December 2012 citing ‘poor market conditions’ but its annual 54 million gallon capacity makes it one of the largest ethanol producing outlets in the south-eastern US.

‘This transaction allows us to look at alternative feedstocks, as well as how the plant may be used for products beyond traditional ethanol production,’ says Don Davis, president of Ergon's refining and marketing division. ‘In addition, we feel the facility can be synergistic with the nearby Ergon Refining's opportunities for an expanded product base.’