NTR to merge US ethanol business with Green Plains

RENEWABLE energy and waste management group, NTR is to merge its ethanol business in the US with Green Plains Renewable Energy.

The move will give NTR an indirect quote on the Nasdaq in New York, where GPRE is listed.

The merger will go ahead once NTR has acquired the Virgin Group’s 50% interest in Virgin Biofuels, the joint venture company they both founded to exploit ethanol production in the US market.

Production capacity of the combined company will exceed 300 million gallons of ethanol per year.

NTR will have more than 40% of the enlarged entity and to complete the deal it will invest e60 million in cash in the enlarged group.

VBV has a majority interest in two ethanol plants — Indiana Bio-Energy and Ethanol Grain Processors of Obion, Tennessee.

Both are under construction and should be completed this autumn. Each will have a capacity to produce a minimum annual output of 100 million gallons of ethanol.

Chief executive of NTR, Jim Barry said the move represented another step forward by the group in its drive to build scale in the US ethanol market.

As a result, NTR will be in a position to exploit further consolidation opportunities as they emerge, he said.