Harvestone Group continues growth plans with Midwest AgEnergy additions
In the United States (US), Harvestone Group LLC, a global commodity merchant focused in the biofuels sector has announced the addition of two more ethanol plant transitions to the platform along with new combined capital commitments of US$100 million in financing to foster future development opportunities. Midwest AgEnergy Group (MAG), the owner of the two ethanol facilities, is set to make the official transition to Harvestone's marketing, logistics, and trading platform as of March 1, 2020.
According to Harvestone, these events mark the successful completion of another major milestone for the Harvestone team and shareholders as it continues executing to its growth strategy
We are excited to finally be transitioning the MAG facilities to the Harvestone platform. This is an impressive team with well-located assets, and we are excited to be partnering with them, said Kevin Stewart of Harvestone.
Midwest AgEnergy Group (MAG) is the owner of two strategic ethanol facilities in North Dakota (ND) – Blue Flint Ethanol and Dakota Spirit – totaling more than 150 million (US) gallons (≈ 568 million litres) of annual capacity.
We are very impressed with the Harvestone team, platform, and capabilities and are excited to be making the transition. We see this model as a value-added way to transparently align independent producers with the critical marketing and trading function that directly benefits MAG and its shareholders, said Jeff Zueger of Midwest AgEnergy.
Secured US$100 million
Second and in conjunction with the upcoming volume growth, the company has secured combined capital commitments of $100M from industry-leading lenders to support the growth trajectory of the platform. The new credit facility is being led by BNP Paribas, an energy industry leader in commodity finance.
This puts Harvestone in a unique position to continue to deploy capital in a way that adds value to both producer partners and end-user customers.
Ethanol markets are going through a challenging time and this access to capital allows us the ability to step in and help create value throughout the supply chain, said Mack Pennington, CFO of Harvestone.