PEKIN, Ill., Aug. 3 /PRNewswire-FirstCall/ -- Aventine Renewable Energy Holdings, Inc. , a leading producer, marketer and end to end supplier of ethanol, today announced that it had closed on its previously announced purchase of approximately 86 acres of land from the Aurora Cooperative in Aurora, NE.
The purchased land will be used by Aventine for a proposed 220 million gallon ethanol plant. The site is adjacent to an existing 50 million gallon ethanol facility operated by Nebraska Energy, LLC., of which Aventine is a majority partner/owner. The new plant will be one of three facilities to be built as previously announced by Aventine with Delta-T as the technology provider and Kiewit Energy Company as the contractor. We expect to complete the building of the plant by the end of 2009.
In connection with the purchase of the land, Aventine signed agreements with the Aurora Cooperative relating to the development of the Aurora West site, which includes the purchased land, and a grain supply agreement and a marketing agreement whereby the Aurora Cooperative would be the sole grain supplier for the proposed ethanol plant, as well as a marketer of the syrup and the sole marketer of wet distiller's grain with solubles produced by the facility. Nebraska Energy's existing grain supply and marketing arrangements with Aurora Cooperative were also extended.
Ron Miller, Aventine's President and Chief Executive Officer said, "We continue to execute our business plan in order to increase our in-house production of ethanol. The purchase of this land adjacent to our current Aurora facility is another step forward in achieving our goals. We look forward to reaching the next milestone in regards to this expansion site."
"The quality and sustainability embedded in this announcement is truly remarkable," President and CEO of the Aurora Cooperative George Hohwieler added. "We believe the structure and planning that has marked the Aurora West project will be a national model for agri-business and bio-fuels development in the years to come."
As part of the transaction, the Aurora Cooperative also purchased of six acres of ground from Nebraska Energy, LLC. This land will be used for the state-of-the-art grain handling facility that will serve both ethanol plants. The ground breaking ceremony for the grain handling facility is scheduled for September 7, 2006.
About Aventine
Aventine is a leading producer, marketer and end to end distributor of ethanol in the United States. Aventine produces, markets and distributes ethanol to leading energy companies. In addition to ethanol, it is also a producer of corn gluten feed, corn germ and brewers' yeast.
Internet address is http://www.aventinerei.com/ .
About the Aurora Cooperative
Based in Aurora, NE since 1908, the Aurora Cooperative is a world-class, multi-purpose agricultural cooperative providing service and expertise in grain, agronomy, feed and energy. The Aurora Cooperative has locations in 32 communities in south central Nebraska and northern Kansas.
Internet address is http://www.aurora.coop/ .
About Delta-T Corporation
Headquartered in Williamsburg, VA, Delta-T is a design-build firm that provides alcohol plants, systems, and services to the fuel, beverage, industrial, and pharmaceutical markets. Delta-T is known for pioneering many of the recent innovations currently in use by the newest generation of biorefineries to produce fuel ethanol, including the commercialization of molecular sieve dehydration, zero discharge of process wastewater, and more efficient refining/purification systems to produce high quality alcohols. Delta-T has provided alcohol production, dehydration, and purification solutions to more than 110 clients on five continents. Delta-T Corporation is located at 323 Alexander Lee Parkway, Williamsburg, VA 23185, USA. Telephone (757) 220-2955.
Internet address is http://www.deltatcorp.com/ .
About Kiewit Energy Company
Kiewit Energy Company, a subsidiary of Kiewit Corporation, provides a wide range of construction services to the oil and gas market. Based in Houston, TX and Calgary, AB, Canada, Kiewit Energy conducts construction projects in the domestic United States and Canada. Our offices support a growing list of oil and gas related construction projects including: oil sands processing facilities, refinery expansions, gas plant expansions, co-generation facilities, ethanol production facilities, spool fabrication facilities, SAGD facilities, and LNG onshore and offshore facilities. The oil and gas markets are expanding rapidly in Canada and experiencing new challenges in the United States. Over the next decade, Kiewit Energy will continue to be a key constructor in these markets.
Internet address is http://www.kiewit.com/energy .
Forward Looking Statements
Certain information included in this press release may be deemed to be "forward looking statements" within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release, are forward looking statements. Any forward looking statements are not guarantees of Aventine's future performance and are subject to risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by such forward looking statements. Aventine disclaims any duty to update any forward looking statements. Some of the factors that may cause Aventine's actual results, developments and business decisions to differ materially from those contemplated by such forward looking statements include the following:
-- Changes in or elimination of laws, tariffs, trade or other controls or
enforcement practices such as:
-- National, state or local energy policy;
-- Federal ethanol tax incentives
-- Regulation currently under consideration pursuant to the passage of
the Energy Policy Act of 2005, which contains a renewable fuel
standard and other legislation mandating the usage of ethanol or
other oxygenate additives;
-- State and federal regulation restricting or banning the use of
Methyl Tertiary Butyl Ether
-- Environmental laws and regulations applicable to Aventine's
operations and the enforcement thereof;
-- Changes in weather and general economic conditions;
-- Overcapacity within the ethanol and petroleum refining industries;
-- Total United States consumption of gasoline;
-- Availability and costs of products and raw materials, particularly
corn, coal and natural gas;
-- Labor relations;
-- Fluctuations in petroleum prices;
-- Aventine's or its employees' failure to comply with applicable laws and
regulations;
-- Aventine's ability to generate free cash flow to invest in its business
and service its indebtedness;
-- Limitations and restrictions contained in the instruments and
agreements governing Aventine's indebtedness;
-- Aventine's ability to raise additional capital and secure additional
financing;
-- Aventine's ability to retain key employees;
-- Liability resulting from actual or potential future litigation;
-- Competition;
-- Plant shutdowns or disruptions at our plant or plants whose products we
market;
-- Availability of rail cars and barges; and
-- Renewal of alliance partner contracts.
