Green Plains to acquire ethanol plant in Minnesota, US

Green Plains Renewable Energy said that its bid to buy an ethanol plant from Otter Tail Ag Enterprises in Minnesota has been accepted by a US bankruptcy court.

With the addition of the 55 million gallon per year dry-mill ethanol plant near Fergus Falls, the company brings its total production capacity to about 715 million gallons annually.

The acquisition of the plant is expected to be completed next month.

The company will finance the $55m acquisition with cash and financing from a group of nine lenders, led by AgStar Financial Services.

Green Plains president and CEO Todd Becker said that the Fergus Falls plant is in a great location with ample feedstock and an excellent workforce.

"We are continually looking for opportunities to expand production at reasonable valuations and adding this operating plant to our business is a solid fit for us," Becker said.

Otter Tail Ag Enterprises filed for Chapter 11 bankruptcy protection in October 2009.

source: biofuelsandbiomass.energy-business-review