US biorefiner Green Plains Inc has announced that subsidiary Green Plains Ord will buy the ethanol storage and transport assets at Green Plains Ord ethanol facility in Nebraska, from Green Plains Partners for US$27 million (€22.3 million).
Green Plains Partners is Green Plains Inc’s storage and transport subsidiary. The deal also includes the transfer of 180 railcar leases. The deal will allow Green Plains Partners to reduce its outstanding debt and invest in new protein technology initiatives, according to CEO Todd Becker, which will result in higher throughput rates.
Green Plains Partners says that the storage and throughput services agreement will be amended to adjust the quarterly minimum volume commitment to 217.7 million gallons (824 million L) per quarter, around 91% of the 958 million gallons of the annual production capacity of Green Plains Inc. It will also extend the maturity date of the agreement by one year to 30 June 2029.
Additionally, Green Plains Ord is to sell the Ord ethanol plant, which has a production capacity of 65 million gallons, to GreenAmerica Biofuels Ord, a subsidiary of a privately owned fuel distribution company, for US$64 million, plus working capital.
‘We believe the value achieved from the sale of the Ord facility begins to demonstrate that we remain undervalued relative to the potential of our portfolio. As we execute on our total transformation strategy, adding additional innovative, sustainable and clean products produced at our biorefineries through the application of these technologies, we believe our value will continue to increase,’ says Becker.
The transactions are expected to close within the next 45 days.