Summit Agricultural Group acquires Prairie Horizon Agri-Energy
In the United States (US), Summit Agricultural Group (SAG), through its investment affiliate Summit Ag Investors, has announced the acquisition of Prairie Horizon Agri-Energy LLC (Prairie Horizon), a biorefinery in Phillipsburg, Kansas (KS). The value of the transaction has not been disclosed.
According to a statement, Summit will construct a state-of-the-art wheat protein ingredients facility and retrofit the existing corn-based ethanol plant to produce ethanol from wheat starch.
Upon completion of the ingredients plant and final conversion, the company will be the largest wheat protein producer in North America and will generate low carbon intensity renewable fuel.
Recognizing the rising demand for high protein ingredients and innovative feed products, coupled with renewable fuels that reduce our carbon footprint, this investment fits with what we have successfully done many times in Summit’s history. We evaluated several sites in various wheat-growing areas and Prairie Horizon is ideally located. The wheat protein we will produce is a healthy ingredient used widely within baked goods, pet food, and growing aquaculture feed markets. Today, wheat protein demand in the US is heavily reliant on imports, and with consumers demanding more transparency about the origins of the food they eat, we see a real opportunity, said Bruce Rastetter, CEO of Summit Agricultural Group.
Summit will utilize best-in-class construction and engineering providers for the project which will total more than US$200 million. The ingredients plant will be operational within two years and will be the largest wheat protein facility in North America.
We ran a thorough search across the US to identify the best site to execute on this strategy around plant proteins, which leverages Summit’s legacy operating in the biofuels and agriculture sectors. Given Prairie Horizon’s direct access to abundant local wheat production and Kansas’ business-friendly environment, we believe we have a significant advantage. Our investment will bring additional jobs to rural America, increase the domestic supply of sustainable protein ingredients, reduce reliance on imports, and further reduce our carbon footprint through this proven process, said Justin Kirchhoff, President of Summit Ag Investors.