NEW YORK (DTN) -- Green Plains Renewable Energy, Inc. said today that it has signed an agreement to acquire interests in Choice Ethanol Holdings, LLC, the entity that owns the former NEDAK Ethanol, LLC ethanol plant located in Atkinson, Neb., and an ethanol storage and loading facility located about 15 miles east of the plant.
In a news release, Green Plains said the dry-mill ethanol plant will add about 50 million gallons of operating capacity to its current annual production capacity of 740 million gallons. The ethanol plant utilizes Delta-T processing technology.
According to the release, the ethanol storage facility holds about 24,000 barrels of ethanol and is located on the BNSF rail line.
"The acquisition of the plant in Atkinson expands our ethanol production platform and aligns with our ongoing strategy of growing our business and enhancing long-term shareholder value," said Todd Becker, president and CEO of Green Plains. "The plant meets our disciplined acquisition criteria and we have a deep understanding of this technology, size and geographic area. We believe we can rapidly improve the overall performance of this plant."
Green Plains plans to staff and restart the plant within the next four weeks. Once the transaction closes, the company plans to begin installing corn oil extraction technology, which should be completed in the fourth quarter of 2013. Completion of this transaction is subject to standard and customary closing conditions.
Carl Marks Advisory Group served as exclusive financial advisor to Choice Ethanol Holdings, LLC, according to the news release.
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