Poet Buys Flint Hills Ethanol Plants
Poet Acquisition Expands Company's Ethanol Production Capacity by 40%
LINCOLN, Neb. (DTN) -- Poet LLC cemented its place as the largest ethanol producer in the United States by acquiring all the biofuels assets of Wichita, Kansas-based Flint Hills Resources, in a deal that gives Poet an annual production capacity of about 3 billion gallons.
Poet made the announcement in a news release Tuesday but did not disclose financial details of the transaction.
With the purchase, Poet now owns and operates 33 ethanol plants in Michigan, South Dakota, Indiana, Iowa, Ohio, Minnesota, Missouri and Nebraska. As part of the transaction, Poet now owns terminals in Texas and Georgia and expanded its ethanol-production capacity by about 40%.
Flint Hills also operates three oil refineries with about 700,000 barrels of daily production capacity. The company produces aromatics, asphalt and other chemicals.
Poet also produces renewable food-grade carbon dioxide, purified alcohol, high-protein animal feed, asphalt additives and corn oil used for renewable diesel.
At the beginning of the COVID-19 economic shutdown last year, Poet announced it was idling ethanol plants in South Dakota and Iowa and delaying startup of a new plant in Indiana. (See https://www.dtnpf.com/…)
In 2019, Poet announced it was idling cellulosic-ethanol production at its plant in Emmetsburg, Iowa, after the EPA granted a number of small-refinery exemptions to the Renewable Fuel Standard. (See https://www.dtnpf.com/…)
"This acquisition will increase Poet's ability to bring even more high-quality, plant-based biofuels and bioproducts to the world, allowing us to have an even bigger impact on fighting climate change and cleaning our air," Poet founder and Chief Executive Officer Jeff Broin said in a news release.
"We've been a leader in the biofuels business for 33 years and have never wavered in our belief in the power of agriculture and biofuels to offer the most accessible, near-term solution to climate change. With this move, we're demonstrating our commitment to the future of low-carbon, plant-based liquid fuels."
Todd Neeley can be reached at email@example.com
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