Murphy oil buys $92 million ethanol facility
Murphy Oil has announced that it will buy a corn-based ethanol plant in North Dakota for $92 million (€ 63 million), marking the company's first foray into biofuel manufacturing.
The Arkansas-based oil company said the deal will be financed primarily through non-recourse debt offered through the sellers.
The company plans to invest $15 million in working capital into the 110 million gallon per year facility, which started production in July 2008, but has sat idle since October 2008.
Rising federal production mandates require 12.95 billion gallons of biofuel to be blended into the nation's fuel supply in 2010 and 36 billion gallons in 2022.
Production at the plant, which is located near feedstock supply and transportation for the end product, should start shortly.
The Arkansas-based oil company said the deal will be financed primarily through non-recourse debt offered through the sellers.
The company plans to invest $15 million in working capital into the 110 million gallon per year facility, which started production in July 2008, but has sat idle since October 2008.
Rising federal production mandates require 12.95 billion gallons of biofuel to be blended into the nation's fuel supply in 2010 and 36 billion gallons in 2022.
Production at the plant, which is located near feedstock supply and transportation for the end product, should start shortly.
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