Canadian ethanol plant sold to finance consortium
North American energy producer and supplier Just Energy announced the sale of affiliate company Terra Grain Fuels’ ethanol plant was completed earlier in December.
The plant, located in Belle Plaine, Canada, was bought from Just Energy by a consortium of financial firms, all of which had a stake in the original agreement to finance the construction of the plant, which cost $150 million (€101 million) when it came on stream in 2008.
Earlier this month, the company said it had agreed to sell Terra Grain Fuels to a group of Saskatchewan businesses, including its $68 million debt, for a ‘nominal purchase price’, according to reports.
The ethanol plant, which was part of the acquisition of Universal Energy Group in 2009, was not considered a ‘core asset’ of Just Energy.
Terra Grain Fuels was announced in 2006 as North America’s largest wheat-based ethanol producer at 150 million litres a year. However, the plant’s capital cost exceeded original estimations and the completion date was pushed back a year. The plant reportedly also struggled with higher-than-expected feedstock costs, as feed wheat prices doubled, while ethanol prices dropped.
Click here to read this press release on BioFuels International.