Green Plains to expand biofuel supply chain in West Tennessee

April 22, 2010

Biofuels company Green Plains Renewable Energy, Inc., is to expand its feedstock supply chain in West Tennessee.

North America’s fourth largest ethanol producer said this week it has entered into definitive agreements to acquire agribusiness operations in the area, including five grain elevators with a federally-licensed storage capacity of 11.7 million bushels of grain.

The grain elevators are all located within 50 miles of the company’s ethanol production facility in Obion, Tennessee – at Como, Dyer, Kenton, Trenton and Union City, TN.

The assets are being acquired from companies owned by the Tom Wade family and Farmers Grain of Trenton, LLC.

Green Plains, which has its headquarters in Omaha, Nebraska, said it had also agreed to buy grain and fertilizer inventories and other assets.

The deal is expected to close within the next two days, and will bring the total number of grain elevators operated by Green Plains up to 13, providing 30.3 million bushels storage capacity.

“Strategic”

“We are pleased to add these strategic assets to our diversified platform,” said Todd Becker, President and Chief Executive Officer of Green Plains Renewable Energy.

“Expanding our agribusiness operations around our ethanol production facilities enables us to strengthen relationships with local producers and allows us to source corn more effectively.”

Will Wade, representative of the companies owned by the Tom Wade family, said: “Green Plains Renewable Energy has a solid reputation in agribusiness and ethanol production, and I am confident that our customers will continue to receive exceptional service and competitive prices at each location. Our employees and our facilities will continue to grow and thrive as part of the Green Plains team.”

Green Plains has six ethanol production plants, located in Indiana, Iowa, Nebraska and Tennessee, with an annual operating capacity of around 480 million gallons.