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

White Energy, Ltd. Enters Into Purchase Agreement to Acquire U.S. Energy Partners, LLC

Posted on: Thursday, 20 April 2006, 15:00 CDT

DALLAS, April 20 /PRNewswire/ -- White Energy, Ltd., which was founded in 2005 to specialize in creating clean and renewable energy solutions, has signed a definitive purchase agreement to acquire U.S. Energy Partners, LLC (USEP), which owns and operates a 40-million-gallon-per-year (MGPY) nameplate ethanol processing plant located in Russell, Kansas, the two companies announced today. Terms of the transaction were not disclosed.

"The Russell facility is among the most efficient and well-run ethanol plants in the country with excellent relationships with the local government and business community," said Kevin Kuykendall, Chief Executive Officer of White Energy. "Because of its outstanding management and operations, it will be the centerpiece of our strategy to assemble a portfolio of facilities that produce renewable fuels that are environmentally-sensitive alternatives to regular gasoline."

Kuykendall said the facility will continue to operate under the direction of the existing experienced plant management and its highly-proven staff.

The facility currently has 77 employees and White Energy is focused on maintaining a "best in class" philosophy with the Russell facility. He said the Russell team will provide the framework with which to grow White Energy's operating structure and future facilities.

"White Energy is dedicated to building a world-class renewable fuels business, with an operating culture that values the safety of the employees and the communities they live in," said general manager John Neufeld. "White Energy will take the successful business model established by USEP for Russell to a new level of excellence and will maintain its support to the community and its citizens."

White Energy said it plans to build on the relationship with the City of Russell established by USEP and will continue its support of activities in the Russell schools as well as other community programs.

The Russell plant was originally built in 2001 by ICM, Inc., one of the premier design/engineering firms in the ethanol industry, as a 25 MGPY facility. One year after completion, the plant's capacity was expanded to 40 MGPY. This highly-integrated and efficient plant produces various products as a result of the commingled facilities located in Russell.

Production from these facilities includes: ethanol, wet and dry distillers' grain (used for cattle feed), CO2, and wheat gluten. Each of these products is sold by third parties into their respective markets.

Ethanol is an alcohol-based alternative fuel produced by fermenting and distilling starch crops that have been converted into simple sugars. Ethanol is most commonly used to increase octane, extend the gasoline supply and improve the emissions quality of gasoline.

In addition to the Russell plant, Dallas-based White Energy announced last year that it would build a 100MGPY ethanol plant in Hereford, TX, and are expected to begin construction in June 2006.

USEP is a joint venture currently owned by Energy Investors, LLC and Nesnah Ventures.

"USEP has built and operated a world class facility that is an integral part of the local community as well as an important component in our nation's drive to energy efficiency," said Garry Hayes, CEO of Nesnah Ventures. "We are confident that White Energy will continue to build on that record of success."

"As the leading ethanol processing plant design and engineering company, we are proud of the strong operating efficiencies that this facility was able to achieve. We are delighted that White Energy will take this business to a new level of excellence," said Dave Vander Griend, CEO of ICM, Inc.

White Energy Ltd. is an investment of White Ventures, Ltd. a $250 million venture capital firm located in Dallas, Texas. For more information about White Energy, visit http://www.white-energy.com/ .

White Energy, Ltd.

CONTACT: Kevin Kuykendall of White Energy, Ltd., +1-972-715-6459, orkkuykendall@white-energy.com

Web site: http://www.white-energy.com/

Source: PRNewswire

More News in this Category