Gavilon signs ethanol marketing agreement with Advanced BioEnergy

Commodity management firm Gavilon has become the exclusive ethanol marketer for Advanced BioEnergy's three facilities located in Fairmont, Nebraska; and Aberdeen and Huron, South Dakota.

The announcement was made after subsidiaries of the Gavilon Group entered into multi-service commercial agreements with subsidiaries of Advanced BioEnergy.

Under the terms of the agreement, Gavilon will also be the exclusive marketer for distillers dried grains with solubles (DDGS) for the Aberdeen facility, effective from 1 August 2013.

Describing Gavilon as a 'strategic partner', Advanced BioEnergy CEO Richard Peterson says: 'Gaavilon offers a comprehensive solution that will help us achieve our risk management objectives in a competitive market'.

'This agreement leverages our core capabilities and will enable Advanced BioEnergy to tap into Gavilon's extensive agricultural and energy networks. By utilising Gavilon's expertise in the commodity markets that drive ethanol production, Advanced BioEnergy will be able to more effectively manage its processing margins in both the spot and forward markets,' comments Randy Ives, director of ethanol services at Gavilon.