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Orion Ethanol Acquires Dimmitt Wet Milling Facility

Posted on: Thursday, 27 March 2008, 09:00 CDT

Renewable energy developer Orion Ethanol has acquired a corn fructose wet milling facility located in Dimmitt, Texas, from Dimmitt Ethanol for $2.5 million in cash due at closing, a subordinated promissory note of $2.5 million bearing 3.5% annual interest and eight million common shares.

The Dimmitt facility, idle at the time of purchase, previously operated as a corn fructose facility with a grinding capacity of over 60,000 bushels of corn per day.

Orion Ethanol plans to convert the facility into a fully integrated renewable fuels campus in three phases over three years. The first phase encompasses converting the corn fructose wet milling facility into a 60 million gallon per year ethanol plant and a 10 million gallon per year edible oil extraction facility.

The company noted that phases two and three will consist of adding a 10 million gallon per year cellulose-to-ethanol processing facility, a 12 million gallon per year biodiesel plant, a 25,000 ton per year yeast plant, and a 60MW to 75MW wind and biomethane-based electrical generation facility.

The asset purchase brings with it approximately 1,200 surrounding acres and a wind lease agreement. Orion is currently seeking strategic partners for the construction of a wind farm project at the site.

Source: Datamonitor

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