In the United States (US), Harvestone Group LLC, a global commodity merchant focused in the biofuels sector has announced the addition of exclusive marketing agreements for four more ethanol plants. These facilities are owned by Glacial Lakes Energy LLC (GLE) of South Dakota (SD) and represent over 360 million (US) gallons (≈ 1.36 billion litres) of annualized production capacity.
According to a statement, this addition adds a meaningful increase to Harvestone’s marketing volume and broadens the strategic footprint which now markets over 850 million (US) gallons ( ≈ 3.22 billion litres) of ethanol production in only its second year of commercial operations. The plants transitioned to Harvestone’s platform on July 1, 2020.
Glacial Lakes Energy, a wholly-owned operating and management subsidiary of Glacial Lakes Corn Processors (GLCP), currently operates four ethanol plants in South Dakota (SD) – two 120 million gallon (≈ 454 million litre) per annum facilities located in Watertown and Mina, a facility located in Aberdeen and one in Huron, South Dakota (SD).
The Aberdeen plant currently produces about 49.0 million gallons (≈ 185 million litres) annually while the Huron plant currently produces about 33.0 million gallons (≈ 125 million litres) per annum and both were acquired by Glacial Lakes Energy in December 2019.
In addition, GLE holds a 15 percent investment in Granite Falls Energy a 60 million gallon (≈ 227 million litre) per annum facility near Granite Falls, Minnesota (MN), and an 8 percent ownership in Redfield Energy, LLC, a 50 million gallon (≈ 189 million litre) per annum plant located near Redfield, SD.
We believe the alignment of ethanol marketing and logistics with trading creates value for producers and shareholders. The experienced Harvestone team is well-positioned to deliver, said Brad Schultz of Glacial Lakes Energy.
Harvestone’s unique business model, long-term ethanol production partnerships and access to capital in conjunction with this accomplishment continue the momentum for growth in future biofuel plant transitions as well as supply chain expansion.
Harvestone’s team and shareholders are excited for the volumes to begin flowing through the platform. These gallons are accretive to our existing domestic and export footprint. Since inception, we have been expanding across the United States and Canada, and these strategic facilities give us an opening to the rest of the global markets, said Kevin Stewart of Harvestone.
