White Energy Holding Company Acquires Greenfield Ethanol Project in Plainview, Texas.
White Energy Holding Company LLC today announced that it has acquired a 100-million-gallon-per-year greenfield ethanol project from The Scoular Company, a nationwide agricultural services company headquartered in Omaha, Neb.
The plant, located in Plainview, Texas, will be a "near twin" of White Energy's other ethanol facility under construction in Hereford, Texas. The Plainview facility is fully permitted and construction is underway, with completion targeted for early 2008.
Dallas-based White Energy also owns an operating 45-MGPY plant in Russell, Kan., which, when combined with output of the two Texas plants, will bring White Energy's total production capacity to 245 MGPY.
In addition to acquiring the Plainview site, White Energy said it has formed a long-term strategic agreements with Scoular under which Scoular will provide grain procurement and distillers grain marketing services for selected White Energy plants and comprehensive risk management services for the company.
"This acquisition fits well into our expansion plans, and, with the addition of Scoular's agricultural transportation and distribution expertise, White Energy has significantly elevated its competitive position in the renewable fuels market," said Kevin D. Kuykendall, White Energy's chief executive officer.
With the Hereford plant only 70 miles away, Kuykendall sees Plainview as an ideal location with many advantages, such as shared management, marketing and logistical resources. The two plants are served by the same BNSF rail line and have nearly identical designs by ICM Inc. Fagen Inc. is under contract and has begun construction on both plants.
Located in the heart of Texas cattle country, Plainview will provide distillers wet grain (DWG) byproduct to areas feedlots and dairy operations, although both plants will also be equipped to dry the distillers grain for shipment to more distant markets.
"The synergies offered by the close proximity of Hereford and Plainview will enable us to serve market demand in the West and Southwest and establish White Energy as a leading ethanol producer and distributor in the U.S.," said Kuykendall.
Kuykendall added that once completed, the Plainview plant will be one of a handful in the country that can simultaneously unload 110 rail cars of grain while loading out 95 rail cars of ethanol.
"We look forward to a partnership with this growing company," added Randal Linville, president and chief executive officer of Scoular. "White Energy is quickly becoming one of the nation's dominant, renewable fuels companies with a compelling vision for plant location. The company's strategic business plan, strong financial support and experienced management team, coupled with Scoular's resources and expertise, create a solid foundation for long-term success in what is sure to become a very competitive renewable fuels environment."
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|Date:||Nov 2, 2006|
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