|By ANN ALLEN
MINNEAPOLIS, Minn. — Advanced BioEnergy, LLC has announced the acquisition of Indiana Renewable Fuels (IRF) of Rochester, Ind.
IRF, which will become a wholly owned subsidiary of Advanced BioEnergy, has signed a letter of intent with Fagen, Inc. to build a 100-million-gallon ethanol production plant to be located near the County Line Landfill north of Rochester. Two sites, one in Fulton County and the other in Marshall County, are under consideration.
IRF believes the Allied Waste Industries-operated landfill will provide methane gas to power the plant.
Site preparation is expected to begin in the fall of 2006 with construction starting in 2007.
Revis Stephenson, chairman and CEO of Advanced BioEnergy, said the IRF acquisition, the company’s first, typifies an approach to company growth that combines sound business fundamentals with local community involvement.
“As a company, one of our core values is to engage local people in the leadership of the ethanol plants we develop,” he said.
“One of the greatest benefits of ethanol production is its economic impact on rural communities,” he added. “We want to ensure that the communities are involved in the development, management and rewards of the plant.”
According to IRF President Glen Bode, this opportunity for continued local involvement was key to the agreement.
“One important objective of IRF is to create economic opportunity for the local area and provide the community and its citizens with a way to get involved in the ethanol industry,” Bode said.
Praising Advanced BioEnergy for placing a high value of local involvement and leadership, he said, “We believe this is a great fit for Indiana Renewable Fuels.”
Bode said the board of directors will be comprised of seven IRF board members and two from Advanced BioEnergy.
Greg Groninger, one of the original 34 IRF board members, said, “We did not sell out. We are still owners in IRF and now ABE.”
According to Advanced BioEnergy’s Stephenson, future acquisitions, such as the IRF project, are fundamental to the company’s growth plan.
“We intend to establish a multi-plant presence across the United States in order to ensure access to a variety of markets for ethanol and co-products,” he said. “We plan to take a comprehensive and geographically diverse approach to ethanol production while keeping our commitment to the local communities in which these plants operate.”
Advanced BioEnergy, organized early in 2005, also is building a 100-million-gallon ethanol plant near Fairmont, Neb., slated to begin production in 2007. Advanced BioEnergy closed on an equity-financing round in March 2006, raising $60 million. The funds are expected to be used to build the Nebraska site and to fund development of other opportunities, such as the IRF acquisition.
This farm news was published in the May 24, 2006 issue of Farm World.