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Ethanol weeks away at Central City, Ord plants
By Mark Coddington
mark.coddington@theindependent.com
CENTRAL CITY -- The sale of Central City's and Ord's ethanol plants is expected to be closed by today, and both plants are scheduled to be operating by the end of the month.
Todd Becker, president and chief executive officer of the Omaha-based Green Plains Renewable Energy, said Wednesday morning that he plans to finalize his company's $123.5 million purchase "within the next 24 to 48 hours."
Becker said the staff is in place at both plants, which are undergoing improvements before they begin grinding corn later this month. Ord's first grind is targeted to be on July 15, with Central City following on July 25.
Green Plains announced in May that it would buy the two plants from VeraSun Energy Corp. of Sioux Falls, S.D., which filed for bankruptcy protection last October.
Becker gave an update on the sale's progress during a brief visit to the Central City plant Wednesday morning by Gov. Dave Heineman.
Both Becker and Heineman were bullish on the future of ethanol, with Becker saying that ethanol makers' profit margins are improving and that supply and demand for the fuel are reaching an equilibrium.
"We're just coming out of the worst period in the history of the industry -- or that the industry has seen in a very long time," Becker said. "The industry, I think, has turned a corner here."
Speaking to Green Plains officials and the plant's employees, Heineman offered a similar impression, though he tied ethanol's future viability to the need for alternative fuels to lessen American reliance on foreign oil.
"You have a very vital and important role to play relative to the energy security and energy independence not just of Nebraska but of America," Heineman said.
Becker said Green Plains plans to install $2 million in improvements to the two plants, with the majority going to Central City for a faster grain conveyor system.
Green Plains will be the third company to own the two plants since March 2008, when VeraSun merged with US BioEnergy Corp., the plants' previous owner.
The two plants were bought at VeraSun's bankruptcy auction in March by a group of lenders led by AgStar Financial Services, which turned around and sold them to Green Plains. (Valero Energy Corp. bought VeraSun's former plant in Albion.)
Green Plains operates four ethanol plants, two in Iowa and one each in Indiana and Tennessee, with a combined expected operating capacity of 330 million gallons per year. The Central City and Ord plants, with a total capacity of 150 million gallons per year, are its first in Nebraska.
Becker told the governor those out-of-state holdings and Green Plains' background in ethanol marketing made it a surprise player in the sale process.
"I think Green Plains Renewable Energy was kind of a sleeper," he said. "Most people didn't know we were in Nebraska or Omaha."
Cliff Mesner, former director of the Central City Economic Development Corp., said he was encouraged by the fact that the plant's employees were able to stay on even as the plant was idling.
Mesner said the plant's reopening would be a boon for local farmers -- especially with a reputable company at the helm.
"It's a big sigh of relief because we've got it in the hands of a company we've got a lot of faith in at this point," Mesner said. "We were pretty worried through that process about what company would step in and buy it, and we're just real comfortable with this company."
Todd Becker, president and chief executive officer of the Omaha-based Green Plains Renewable Energy, said Wednesday morning that he plans to finalize his company's $123.5 million purchase "within the next 24 to 48 hours."
Becker said the staff is in place at both plants, which are undergoing improvements before they begin grinding corn later this month. Ord's first grind is targeted to be on July 15, with Central City following on July 25.
Green Plains announced in May that it would buy the two plants from VeraSun Energy Corp. of Sioux Falls, S.D., which filed for bankruptcy protection last October.
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Both Becker and Heineman were bullish on the future of ethanol, with Becker saying that ethanol makers' profit margins are improving and that supply and demand for the fuel are reaching an equilibrium.
"We're just coming out of the worst period in the history of the industry -- or that the industry has seen in a very long time," Becker said. "The industry, I think, has turned a corner here."
Speaking to Green Plains officials and the plant's employees, Heineman offered a similar impression, though he tied ethanol's future viability to the need for alternative fuels to lessen American reliance on foreign oil.
"You have a very vital and important role to play relative to the energy security and energy independence not just of Nebraska but of America," Heineman said.
Becker said Green Plains plans to install $2 million in improvements to the two plants, with the majority going to Central City for a faster grain conveyor system.
Green Plains will be the third company to own the two plants since March 2008, when VeraSun merged with US BioEnergy Corp., the plants' previous owner.
The two plants were bought at VeraSun's bankruptcy auction in March by a group of lenders led by AgStar Financial Services, which turned around and sold them to Green Plains. (Valero Energy Corp. bought VeraSun's former plant in Albion.)
Green Plains operates four ethanol plants, two in Iowa and one each in Indiana and Tennessee, with a combined expected operating capacity of 330 million gallons per year. The Central City and Ord plants, with a total capacity of 150 million gallons per year, are its first in Nebraska.
Becker told the governor those out-of-state holdings and Green Plains' background in ethanol marketing made it a surprise player in the sale process.
"I think Green Plains Renewable Energy was kind of a sleeper," he said. "Most people didn't know we were in Nebraska or Omaha."
Cliff Mesner, former director of the Central City Economic Development Corp., said he was encouraged by the fact that the plant's employees were able to stay on even as the plant was idling.
Mesner said the plant's reopening would be a boon for local farmers -- especially with a reputable company at the helm.
"It's a big sigh of relief because we've got it in the hands of a company we've got a lot of faith in at this point," Mesner said. "We were pretty worried through that process about what company would step in and buy it, and we're just real comfortable with this company."
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