All subjects
Biofuels & Oils

Pacific Ethanol enters deal with Liberty Basin to sell Idaho grain handling facilities

In the United States (US), Pacific Ethanol, Inc (PEI), a leading producer of specialty alcohols and essential ingredients, announced that it has entered into an agreement with Liberty Basin, LLC to sell 134 acres, rail loop, and grain handling assets at its Pacific Ethanol Magic Valley plant in Burley, Idaho (ID) for US$10 million in cash.

The Pacific Ethanol Magic Valley dry mill and distillery began operations in 2008. Designed by Delta-T, corn is received by unit train from the Midwest and used in a batch fermentation process. All products – ethanol, animal feed, and corn oil – are sold locally by truck serving Idaho (ID) and Utah (UT) markets (photo courtesy Pacific Ethanol).

According to a statement, Pacific Ethanol will retain the ethanol production facility and terminal on the remaining 25 acres and will enter into certain agreements with Liberty Basin, LLC for delivery of grain to the plant. The sale is expected to close on or before November 30, 2020, subject to customary closing conditions.

The sale of real estate and grain handling assets at our Magic Valley facility to Liberty Basin, LLC further demonstrates our commitment to strengthening our balance sheet through monetizing idled assets at a value accretive to shareholders and repurposing the production assets, said Mike Kandris, CEO, Pacific Ethanol.

Operating three distilleries and a specialty yeast production facility at its Pekin, Illinois (IL) campus and four distilleries in the Western states of Idaho (ID), Oregon (OR), and California (CA), Pacific Ethanol is a leading producer of specialty alcohols, carbon dioxide (CO2), corn oil, animal feed, and essential ingredients. All specialty alcohol products as well as fuel-grade ethanol for third parties is marketed via its subsidiary Kinergy Marketing LLC.

As we have said in our recently announced strategic realignment toward a business focus on specialty alcohols and essential ingredients, Pacific Ethanol will repurpose or sell its idled plants. This sale is a first step toward the objective to add value to our Magic Valley plant. We will continue with our strategic realignment plan and anticipate communicating additional transactions in the future, said Mike Kandris.

Most read on Bioenergy International

Get the latest news about Bioenergy

Subscribe for free to our newsletter
Sending request
I accept that Bioenergy International stores and handles my information.
Read more about our integritypolicy here