Green Plains gives NTR major boost

NTR’s US bio-ethanol vehicle Green Plains Renewable Energy is to become the fourth largest ethanol producer in the United States after acquiring two Nebraska plants for $123.5 million (€91.8m).

Fri, 22 May, 2009 - 01:00

Conor Keane Business Editor

Irish-owned NTR has a majority 45% holding in NASDAQ listed Green Plains Renewable Energy (GPRE) which yesterday signed purchase agreements to acquire two ethanol distillation plants in Nebraska.

NTR said the acquisition will increase GPRE’s ethanol production capacity by 45%, from 330 million gallons per year to 480 million gallons, making it the fourth largest ethanol producer in North America. GPRE has a market capitalisation of €60m.

GPRE is acquiring two limited liability companies that own the ethanol plants located near Central City and Ord from a lender group lead by AgStar Financial Services. The Central City plant adds 100 million gallons and the Ord plant adds 50 million gallons of annual expected production capacity. AgStar has agreed to provide $123.5 million in debt financing and $16 million of working capital financing to fund the transactions and plant operations.

NTR, a developer and operator in renewable energy and sustainable waste management, shares are traded on a matched trade basis by Irish stockbroking firms: Davy Stockbrokers, NCB Stockbrokers and Goodbody Stockbrokers. It has a market capitalisation of €398.2m.

NTR plc chief executive Jim Barry said, as a result of these acquisitions, Green Plains has hit a significant strategic milestone.

“Not only has it increased its overall ethanol production with the addition of these high quality assets, it has, in a relatively short period of time, become the fourth largest ethanol producer in North America.”

Green Plains’ president and chief executive officer Todd Becker said the acquisition of the plants “further lowers our cost of production and improves our ability to compete in the industry”.

The US, with 193 distilleries, has the capacity to produce 12.4 billion gallons of ethanol annually, according to the Renewable Fuels Association in Washington.