Guardian buys distressed Minnesota ethanol plant
January 25, 2013
By Argus Media
January 25, 2013, Houston, TX — Guardian Energy Heron Lake is acquiring a Janesville, Minnesota, ethanol production facility from Heron Lake BioEnergy for $55 million.
The Heron Lake BioEnergy (HLB) plant first began ethanol production in October 2007, but has been distressed recently. The 60mn USG/yr (3,900 b/d) plant lost almost $3mn in the first nine months of 2012.
The deal is expected to close on or before 1 March, pending regulatory and board approvals.
The ethanol plant is natural gas-fired and uses locally grown corn. The facility purchases 21mn bushels a year from local farmers. Guardian said it will honor all existing corn contracts associated with the plant.
The agreement also includes a 73pc ownership interest in Agrinatural Gas, which provides natural gas for the facility via a pipeline from Northern Border Pipeline.
The purchase of the facility is viewed as a further commitment to the ethanol industry by Guardian.
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