AgStar Financial Services’ lending group announced Carbon Green BioEnergy has agreed to purchase the Woodbury, Mich., ethanol plant.
The 40-million gallon plant was recently acquired by the AgStar lending group on March 18 through VeraSun Energy’s bankruptcy. This purchase represents the first direct ownership of ethanol production for Carbon Green BioEnergy, headquartered in Chicago. The purchase agreement was recently signed and the sale is expected to close in the next 30 days.
Terms of the agreement were not disclosed.
"This acquisition is particularly rewarding because it is a win-win," said Jim Murphy, president of Carbon Green BioEnergy. "Clearly it represents a sustainable business opportunity for us and our partners. But importantly, it also demonstrates our tangible commitment to the Woodbury and neighboring communities with our focus on buying corn and selling ethanol and its by-products locally, while reducing our carbon footprint."
Paul DeBriyn, president and chief financial officer of AgStar Financial Services said, "We have been impressed with the management from Carbon Green BioEnergy and their commitment to local community producers. This facility will soon be operating, providing biofuels jobs for rural America, buying corn and producing ethanol. This is great news."
AgStar said it will continue to lead a group of lenders in financing Carbon Green BioEnergy. "We believe the outlook for bio-fuels is solid and will improve over time," DeBriyn said.
Carbon Green BioEnergy is a joint development by Carbon Green LLC and Energetix LLC.
AgStar’s lending group continues ongoing discussions with qualified buyers for the five other acquired ethanol plants. "It takes a fair amount of time to work through the sales process for this size of facility. We look forward to making announcements on some of the remaining plants in the very near future," DeBriyn said.
AgStar Financial Services ACA, headquartered in Mankato, employs more than 610 full-time team members. The company is part of the national Farm Credit System and has a public mission to serve 69 counties in Minnesota and northwest Wisconsin. The company has expertise in the corn, soybean, swine, dairy and bio-energy industries. AgStar has developed successful programs in loans, leases, crop insurance, tax services, accounting, consulting and rural home mortgages.
On Monday, Pacific Ethanol, Inc. (NasdaqGM:PEIX) announced that its subsidiaries, which own four ethanol production facilities, have filed for bankruptcy protection.
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