US ethanol plant subject of takeover

US-based Guardian Energy Heron Lake (GEHL) has signed an agreement to acquire the ethanol production assets from Heron Lake BioEnergy.

The transaction, which also includes a 73% ownership interest in pipeline subsidiary Agrinatural Gas, is expected to close by the start of March, pending regulatory and member approval.

The Heron Lake natural gas-fired ethanol plant produces almost 60 million gallons of ethanol and 177,000 tonnes of distillers dried grains per year via locally-purchased corn. GEHL plans to honour all existing corn contracts once the purchase is complete before hosting grain procurement meetings further down the line.

'We look forward to developing long-lasting relationships with area producers and the surrounding communities,’ says GEHL CEO Don Gales.

The ethanol plant began producing ethanol in October 2007 and has 35 full-time employees.