In the US, Kansas City-based Spectrum Business Ventures (SBV) has completed an ethanol plant acquisition in Mead, Nebraska, marking a significant step in renewable energy investments.
The plant, previously owned by E3 Biofuels – Mead, was acquired as part of the company’s strategy to expand its sustainable energy portfolio. Spectrum purchased the company’s assets out of bankruptcy, showcasing its commitment to tackling complex financial situations within the renewable energy sector.
The $90 million (€67.9 million) facility, called the Genesis Complex, was launched back in 2007. However, full-time operations failed to commence after E3 Biofuels faced setbacks, including a boiler explosion and repair issues, which led to the filing for Chapter 11 bankruptcy. This ethanol plant acquisition reflects Spectrum’s strategic focus on revitalizing distressed assets and turning them into profitable ventures.
Although the financial terms of the deal were not disclosed, Spectrum’s CEO, Amit Raizada, commented: “The deal is unique in that we were able to secure a super senior investment and make the company healthy again. We solved an extremely complicated problem and still positioned our capital on top of the stack.” Raizada emphasized the significance of this ethanol plant acquisition in demonstrating the firm’s ability to navigate challenging investment landscapes.
The plant includes a 25-million-gallon ethanol refinery and an anaerobic digester, which converts cattle manure into fuel and energy. This closed-loop production facility is an integral part of the ethanol plant acquisition strategy, highlighting its efficiency in using agricultural waste to produce biofuel. Spectrum plans to make the plant operational again by 2011, ensuring it aligns with their renewable energy goals.
The ethanol plant was designed to run on biomethane captured from agricultural waste to produce corn-derived biofuel. The biogas was generated from 28,000 head of cattle fed on distillers’ grain—a by-product of the ethanol production process. This process underscores the sustainability benefits of the ethanol plant acquisition.
When operational, the plant generated 46 units of energy for every unit derived from fossil fuels, illustrating its efficiency and environmental impact. This acquisition not only adds value to SBV’s portfolio but also reinforces its dedication to sustainability and innovative energy solutions.