PEKIN, Ill., Jan. 16, 2007 (PRIME NEWSWIRE) -- Aventine Renewable Energy Holdings, Inc. (NYSE:AVR), a leading producer, marketer and end-to-end supplier of ethanol, today announced that Indiana Bio-Energy's ("IBE") Bluffton, IN facility will join its marketing alliance network. Aventine will market all of the ethanol produced by the Bluffton, IN facility when production begins. Completion of the facility is expected in the fall of 2008.
In addition to marketing the ethanol produced by the IBE plant, Aventine made a $5 million investment in IBE and will be given a Board seat.
The new Bluffton, IN plant will produce 100 million nameplate gallons of ethanol annually, and is being built on a 346 acre site on the southwest edge of Bluffton. IBE's largest investor, VBV LLC, is an entity majority-owned jointly by an affiliate of Sir Richard Branson's Virgin Group and by Bioverda International Holdings Limited.
Ron Miller, Aventine's President and Chief Executive Officer said, "We are pleased to announce the addition of Indiana Bio-Energy to our marketing alliance. Our growing marketing alliance network helps us further our goal of being the premier end-to-end supplier of ethanol in the country."
About Aventine
Aventine is a leading producer, marketer and end to end distributor of ethanol in the United States. Aventine produces, markets and distributes ethanol to leading energy companies. In addition to ethanol, it is also a producer of corn gluten feed, corn germ and brewers' yeast.
About VBV LLC
VBV LLC is an entity majority-owned jointly by an affiliate of Sir Richard Branson's Virgin Group and by Bioverda International Holdings Limited, a subsidiary of NTR plc of Dublin, Ireland. VBV is intended to be the vehicle through which Virgin and Bioverda make a number of investments in the biofuels sector. The investment in Indiana Bio-Energy is VBV's second investment. In October 2006, VBV agreed to purchase a controlling stake in Ethanol Grain Processors, which will construct and operate a biofuels production facility in Tennessee. These investments by the Virgin Group support Sir Richard Branson's pledge at the Clinton Global Initiative to invest heavily in renewable energy initiatives.
Internet address is www.aventinerei.com.
Forward Looking Statements
Certain information included in this press release may be deemed to be "forward looking statements" within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release, are forward looking statements. Any forward looking statements are not guarantees of Aventine's future performance and are subject to risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by such forward looking statements. Aventine disclaims any duty to update any forward looking statements. Some of the factors that may cause Aventine's actual results, developments and business decisions to differ materially from those contemplated by such forward looking statements include the following:
* Changes in or elimination of laws, tariffs, trade or other
controls or enforcement practices such as:
- National, state or local energy policy;
- Federal ethanol tax incentives;
- Regulation currently under consideration pursuant to the
passage of the Energy Policy Act of 2005, which contains a
renewable fuel standard and other legislation mandating the
usage of ethanol or other oxygenate additives;
- State and federal regulation restricting or banning the use
of Methyl Tertiary Butyl Ether;
- Environmental laws and regulations applicable to Aventine's
operations and the enforcement thereof;
* Changes in weather and general economic conditions;
* Overcapacity within the ethanol and petroleum refining
industries;
* Total United States consumption of gasoline;
* Availability and costs of products and raw materials,
particularly corn, coal and natural gas;
* Labor relations;
* Fluctuations in petroleum prices;
* Aventine's or its employees' failure to comply with applicable
laws and regulations;
* Aventine's ability to generate free cash flow to invest in its
business and service its indebtedness;
* Limitations and restrictions contained in the instruments and
agreements governing Aventine's indebtedness;
* Aventine's ability to raise additional capital and secure
additional financing, and our ability to service such debt, if
obtained;
* Aventine's ability to retain key employees;
* Liability resulting from actual or potential future litigation;
* Competition;
* Plant shutdowns or disruptions at our plant or plants whose
products we market;
* Availability of rail cars and barges;
* Renewal of alliance partner contracts; and
* Our ability to receive and/or renew permits to construct and/or
commence operations of our proposed capacity additions in a
timely manner, or at all.