Flint Hills set to expand ethanol facility ownership

Biofuels and chemicals company Advanced Bioenergy is expected to sell its Nebraska, US ethanol plant by the end of the year to Flint Hills Resources.

The news comes after Advanced Bioenergy wanted to see how much interest would come from a sale after receiving interest from another potential buyer earlier this year. The deal is still subject to regulatory approval.

The Fairmont-based plant opened in 2007, has an annual capacity of around 115 million gallons and produces over 320,000 tonnes of dried distiller grains per year. It also employs 50 people.

‘This announcement underscores the value we have created by developing the Fairmont plant into a superior ethanol production asset,’ says Advanced Bioenergy CEO Richard Peterson. ‘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.’

Flint Hills Resources is a fellow refining, chemicals and biofuels company with operations primarily in the Midwest, Texas and Alaska.   

Advanced BioEnergy will continue to operate its two ethanol plants in Huron and Aberdeen, South Dakota after any transaction closes.