• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

New Energy Capital Makes Investment in Michigan Ethanol Plant; 55 Million Gallon Facility to Be Managed By The Andersons, Inc.

Posted on: Thursday, 13 October 2005, 15:00 CDT

New Energy Capital Corp. today announced its investment in a 55 million gallon per year ethanol production facility currently under construction in Albion, Michigan. The plant, adjacent to a grain terminal owned by The Andersons, Inc. (NASDAQ:ANDE), will produce ethanol from corn grown by local farmers and will also produce distillers grains, a high quality feed supplement ideal for the region's growing dairy industry. Ethanol from the plant will be blended with gasoline for use in the transportation sector. The use of ethanol as a replacement for gasoline cuts U.S. oil dependence, stimulates the nation's farm economy, and reduces greenhouse gas emissions.

The facility, which will be managed by The Andersons, is expected to be completed by September 2006, and will involve an aggregate investment of approximately $86 million. The designer and general contractor will be ICM, Inc. of Colwich, KS, an industry leader in ethanol technology and plant construction. The Andersons and New Energy Capital are joined by three other equity investors, and CoBank of Omaha, Nebraska will lead a consortium of farm credit banks to provide construction and term financing. Plant construction will involve approximately 250 new jobs and operations will require approximately 30 full time equivalent staff.

New Energy Capital CEO Scott Brown said: "We have great regard for The Andersons and are delighted to be partnering with the company on this project. This investment deepens our commitment to the biofuels industry and will deliver important benefits to the nation and our shareholders."

Mike Anderson, President and CEO of The Andersons, Inc., said: "We are excited to be in the ethanol business and express our appreciation to New Energy Capital Corp. for their support of and investment in this project. Their commitment to the ethanol and biofuel industry makes them a strong and valuable business partner."

Dan W. Reicher, New Energy Capital President and former United States Assistant Secretary of Energy, said: "We are particularly pleased to be making this investment at a time when the price of crude oil exceeds $60 per barrel and there is rising concern about the nation's oil dependence and the effects of climate change."

New Energy Capital Corp. (www.newenergycapital.com) is a New England-based company that invests in, owns and operates renewable energy and distributed generation projects. These include a biodiesel production plant in Delaware, an ethanol facility in Indiana, cogeneration projects in California and Massachusetts, and a biomass power plant in Maine. The Company is funded by VantagePoint Venture Partners (www.vpvp.com) one of the nation's largest and most active venture capital firms, and the California State Teachers' Retirement System (CalSTRS).

Source: Business Wire

More News in this Category