Demeter expand ethanol production

01/07/05 Demeter Enterprises, LLC will construct three large-scale ethanol production facilities in the US. The facilities will be located in Linden, Ind., Albion, Neb., and Bloomingburg, Ohio, pending approval of various boards and authorities. If approved, each will produce 100 million gallons of ethanol and 315,000 tons of dry distillers grain (DDG) annually. The facilities, which will cost approximately $125 million each to construct, will source corn from Cargill AgHorizons’ grain elevators adjacent to the plant sites. Nearly 60 new full-time jobs will be created at each locale. Construction is expected to begin later this summer, with the plants fully operational by the end of 2006 or early in 2007.

Demeter Enterprises is an operating company that will be owned by AS Alliances Holdings, LLC, Cargill, Incorporated, Fagen, Inc., and private equity partners. AS Alliances will provide project development, finance, capital markets, executive management and corporate development expertise. Fagen will provide design, engineering and construction expertise. Cargill will provide corn origination, energy and corn risk-management services, transportation logistics expertise, and the marketing of the ethanol and DDG products.

“We have solid backing for this enterprise, having pulled together some of the largest, most respected companies in the ethanol and agribusiness industries,” said Steve Durham, chairman of AS Alliances Holdings. “We are pleased to have an opportunity to invest in a renewable resource that stimulates growth in rural America and meets our nation’s growing appetite for alternative energy sources, while lessening our country’s dependence on foreign energy supplies.”

Cargill officials noted that the new Demeter facilities should benefit from not only Cargill AgHorizons’ local infrastructure and experience in each location, but its broader expertise in the production and marketing of grain-based products.

“As the nation’s third-largest ethanol producer, we are committed to investing in the production of renewable energy today and beyond, and we are very excited to participate in this undertaking,” said Dan Dye, president of Cargill AgHorizons.

“As part of Cargill AgHorizons’ ongoing efforts to help farmers prosper and create additional value for them and rural communities, this initiative will provide another important market for our producer customers,” added Dye, who noted that more than 35 million bushels of corn will be used annually at each new facility. “Cargill’s long, successful and deeply rooted presence in these communities is a testament to their high-quality workforce and solid work ethic, which were major factors in the decision to co-locate Demeter facilities adjacent to our elevators.”
Demeter representatives cited a number of factors in selecting these locations, including significant corn supply, rail-line and highway access, access to ethanol and distiller grain markets, and the established presence of Cargill AgHorizons’ grain origination facilities. “These communities have proven to be great places to do business, and we are grateful to the local community officials and economic development staffs for their ongoing, active help and support in this initiative,” said AS Alliances’ senior managing director Mike Slaney.