The Andersons, Inc. of Maumee, Ohio, which has three ethanol plants in Ohio, Michigan and Indiana, has agreed to buy the 55 million gallon per year ethanol production plant at Denison in western Iowa, owned by Amaizing Energy Holding Company, LLC. The transaction, which remains subject to several contingencies, is anticipated to close in the second quarter of 2012. Financial details were not revealed.
Sam Cogdill, a western Iowa feed and grain dealer who is chairman and CEO of Amaizing Energy, says the proposed sale will address the liquidity concerns of Amaizing Energy's membership, while retaining the economic benefits the Denison facility has in the local area. "Our investors committed to Amaizing Energy to earn a good return on their investment and to further local economic development and we feel great about having met both of those goals," he says. "Placing Amaizing Energy on the market while it was a profitable operation has allowed it to reach a fair deal with a great company who we know will operate our plant properly."
Neill McKinstray, president of Andersons' ethanol group, says "As our first ethanol plant west of the Mississippi, this facility provides us with geographic diversity into some of the best corn ground in the country. The purchase enables us to expand our ethanol production, marketing and services into a new region." Anderson CEO Mike Anderson says "this ethanol facility enables us to offer our grain marketing expertise and the associated services to grain producers in Iowa and fits well with our existing presence as an investor in the Iowa Northern Railway Company and our merchandising relationship with Lansing Trade Group."
The Denison operations consist of an ethanol facility with an adjacent 2.7 million bushel grain terminal, both with direct access to two Class 1 railroads in Iowa.
Record ethanol production in the U.S. in 2011—monthly data shows
In other ethanol news, the Iowa Renewable Fuels Association reports in its recent newsletter that monthly ethanol production data from the U.S. Energy Information Administration (EIA) shows American ethanol producers supplied a record 13.948 billion gallons (332.11 million barrels) in calendar year 2011. That is an increase from 13.231 billion gallons in 2010.
Strong production in the ending months of 2011 helped push domestic ethanol production to those record levels and outpace the Renewable Fuel Standard (RFS) requirement for renewable fuel of 13.2 billion gallons for 2011. December production was a new monthly record of 29.772 million barrels of ethanol.
"Ethanol producers have clearly shown their ability to innovate and evolve to meet the renewable energy demands of the nation, and increasingly, the world," says Bob Dinneen, president and CEO of the national Renewable Fuels Association. "With increasing volumes of ethanol expected to come from additional sources like grasses, ag wastes and garbage, we must commit to opening up American fuel markets to higher level ethanol blends and giving consumers a truer choice at the pump. Blends like E15 offer safe, cost-effective and domestic opportunities to further reduce our reliance on imported oil."