Bloomington, Minn. — Ethanol producer Advanced BioEnergy LLC announced on Oct. 16 that it plans to sell its Fairmont, Neb., ethanol plant to Flint Hills Resources, an indirect, wholly-owned subsidiary of Koch Industries Inc. The transaction is expected to close later this year, and is subject to regulatory approval. The Fairmont ethanol plant has annual capacity of more than 115 million gallons and produces more than 320,000 tons of dried distillers grains each year, as well as more than 18 million pounds of non-food grade corn oil. The plant began production in October 2007, and has about 50 employees. “The announcement today underscores the value we have created over the past four years developing the Fairmont plant into a superior ethanol production asset,” said Richard Peterson, CEO of Advanced BioEnergy. “Maximizing the value of our business has been a priority in the face of continuing market consolidation and compressed operating margins as the industry works toward long-term alignment of supply and demand.” Advanced BioEnergy will continue to operate its two ethanol plants in Huron and Aberdeen, S.D., after the transaction closes. The company has current ethanol production capacity of approximately 200 million gallons/yr. “We feel very fortunate to add Advanced BioEnergy’s Fairmont plant to our biofuel business,” said Brad Razook, CEO and president of Flint Hills Resources. “This is a best-in-class operation located in one of the highest corn-producing regions in Nebraska.” Flint Hills Resources, based in Wichita, Kan., is a leading refining, chemicals, and biofuels company, with operations primarily in the Midwest, Texas, and Alaska. The company operates four Iowa ethanol plants with a combined capacity of 435 million gallons/yr, a biodiesel plant in Texas, and investments in biofuels technology and feedstock development.
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