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home : news : this week's news June 28, 2016

1/24/2013 10:00:00 AM
Heron Lake ethanol plant to be sold

The ethanol plant in Heron Lake will soon be operating under new ownership.

According to a press release sent Thursday, Guardian Energy, LLC, has signed an agreement to purchase the Heron Lake BioEnergy plant. The purchase also includes a 73% ownership interest in subsidiary Agrinatural Gas, LLC, which is the pipeline company formed to construct, own and operate a natural gas pipeline that provides natural gas to the plant through a connection with the pipeline facilities of Northern Border Pipeline Company in Cottonwood County.

The sale is expected to close on or before March 1, pending regulatory and member approval.

Guardian Energy was formed in September, 2009 by six farmer-owned ethanol plants in Little Falls, Benson, Claremont and Winthrop as well as Mason City, Iowa, and Minden, Neb., to purchase the facility on Janesville, Minn. In 2010, the plants in Winthrop, Benson and Minden purchased majority interest in a production facility in Lima, Ohio.

Guardian plants currently have production capacity of 180 million gallons of ethanol and 500,000 tons of distillers dried grains annually. Guardian owners are members of the Renewable Products Marketing Group of Shakopee, which markets the products.

The press release noted that Guardian Energy Heron Lake plans to honor all existing corn contracts for the Heron Lake facility and plans to hold producer meetings to discuss grain procurement within 30 to 45 days of the closing.


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