Harvestone Group adds additional ethanol plant onto its platform
In the United States (US), Harvestone Group LLC, a global commodity merchant focused in the biofuels sector has recently announced that the CORN LP ethanol plant in Goldfield, Iowa (IA) has transitioned onto the Harvestone marketing, logistics, and trading platform as of January 1, 2019.
CORN LP, a 75 million (US) gallon (≈ 283.87 million litre) per annum ethanol plant in Goldfield, Iowa (IA) joins DENCO II, a 36 million gallon (≈ 136.26 million litres) per annum ethanol plant located in Morris, Minnesota (MN) that transitioned to Harvestone Group in July of 2019.
These facilities are exclusively marketed through the Harvestone platform under five-year agreements and represent another volumetric milestone for the company. Harvestone continues building on a solid foundation and unique business model; paving the way for future growth with several more plant transitions and expansion throughout the supply chain over the next several months.
CORN LP is excited to make the transition to Harvestone. It was an easy decision for us to make given the value proposition of the platform. This will give us what we believe an ethanol marketer should be, true alignment with opportunities to participate in upside from trading and optimization. In this margin environment, fractions of cents matter and we see the HG team focused and willing to do the extra work required to capture it on behalf of CORN LP, said Brady Hess of CORN LP.
Harvestone Group, and its affiliated companies, is a global commodity merchant focused in the biofuels sector. The company is backed by a community of producers representing over 1.3 billion gallons (≈ 4.9 billion litres) of production capacity in partnership with strategic commodity investors in the energy and agriculture sectors. The company transacts across the supply chain to include production, marketing, storing, distributing, and trading as well as invests in physical assets that “create meaningful long-term value.”
Our group has put together a unique business model that aligns production with marketing and trading, thereby creating and capturing additional value further in the supply chain on behalf of producers. As one of the first plants to make the transition, we have been very impressed with the value creation, which included netback improvements, service enhancements and full market transparency, said Gunner Greene of IBEC.