PEKIN, Ill., Sept. 24, 2007 (PRIME NEWSWIRE) -- Aventine Renewable Energy Holdings, Inc. (NYSE:AVR), a leading producer, marketer and end-to-end provider of clean renewable energy, today announced that it has received an air construction permit for construction of its previously announced ethanol plant at the Port of Indiana - Mt. Vernon.
The Indiana Department of Environmental Management ("IDEM") issued the air construction permit on September 20, 2007. The permit allows for the eventual construction of a facility that will produce up to 226 million gallons annually of denatured fuel-grade ethanol. The initial phase 1 construction of 113 million nameplate gallons will begin immediately. A notice to proceed has already been issued to the contractor, Kiewit Energy Company. Phase 1 of the project also includes civil engineering site work for the phase 2 expansion. Phase 1 of the project is fully-funded. Aventine has already spent $52.4 million on the project through August, including amounts spent on license fees, the pre-purchase of long-lead time plant equipment and initial site work in anticipation of receiving the air construction permit.
The plant site is located on 116 acres leased from the Ports of Indiana, a statewide port authority operating three maritime shipping facilities totaling 2,300 acres on the Ohio River and Lake Michigan. The plant is being built by Kiewit Energy Company with Delta-T Corporation as the technology provider. Initial production from the plant is expected by the end of 2008. The Mt. Vernon port site is located on the lower Ohio River with excellent access to existing roads, rail and dock infrastructure, including river access to the Mississippi, Cumberland, Tennessee and Tombigbee rivers.
Under an agreement signed last year between Aventine and Consolidated Grain and Barge Company, a subsidiary of CGB Enterprises, Inc. ("CGB"), corn for the ethanol facility will be sourced exclusively from CGB. As part of the agreement, CGB will market the Dry Distillers Grain with Solubles ("DDGS") to export markets. CGB will also be responsible for ethanol and DDGS loading at the site. CGB will utilize its approximate 10 million bushel elevator system in the Mt. Vernon area to source grain for the ethanol plant, and will market the DDGS for export to Europe and Asia. CGB currently owns and operates 65 grain elevators in the U.S. The planned Mt. Vernon operation will be supported by a network of 10 different CGB grain elevators.
Ron Miller, Aventine's President and Chief Executive Officer said, "We are excited that we are now able to move forward expeditiously in completing our expansion plans at Mt. Vernon. Our Mt. Vernon location is one of the premier locations for ethanol production and shipment in the United States. Our relationship with CGB will help make this project a success." Miller continued, "We are strong believers that the U.S. ethanol industry will be supplying 10% of our nation's motor fuel needs. Refiners and blenders will continue to use more and more ethanol, pushing demand higher. This new facility, along with our other growth opportunities, will allow us to remain a significant producer and marketer of ethanol in the United States."
Kevin Adams, President and CEO of CGB Enterprises said, "We at CGB want to congratulate Aventine on receiving their IDEM air construction permit. Together, CGB and Aventine will assist farmers in Indiana, and adjoining states, by increasing their marketing alternatives and value for their corn. Getting this project to this point in time has required the cooperation of many groups, including Aventine, the Ports of Indiana, the Posey County government, the State of Indiana and CGB."
Brad Kaufman, President of Kiewit Energy Company, added, "We are excited that we can now proceed full-speed with what we were hired to do; construct an ethanol plant. We look forward to working with Aventine and Delta-T on this project, and are proud to be associated with these extraordinary companies within the ethanol industry. Kiewit is committed to making this project a success."
Rob Swain, President of Delta-T Corporation, said "Delta-T is proud that our technology solutions will help Aventine remain a leader in ethanol production. Our companies are all leaders within the ethanol industry. We've already gotten off to a good start, and we look forward to the successful completion of this facility."
About Aventine
Aventine is a leading producer, marketer and end-to-end distributor of ethanol to many leading energy companies in the United States. Aventine is also a marketer and distributor of biodiesel. In addition to ethanol, Aventine also produces distillers grains, corn gluten feed, corn germ and brewers' yeast. Our internet address is www.aventinerei.com.
About CGB Enterprises, Inc.
Headquartered in Mandeville LA, a suburb of New Orleans, CGB Enterprises operates over 70 locations across the U.S. and through its subsidiary CGB Co., is a significant principle in the U.S. grain industry. In addition to owning/operating a significant number of grain facilities, CGB Enterprises operates numerous other related businesses units including, stevedoring, soybean processing, barge shipyard repair and fleeting, transportation services packages involving barges, railroad and trucking, ocean vessel services along the gulf coast, and risk management services for US farmers. Internet address is www.cgb.com.
About Kiewit Energy Company
Kiewit Energy Company, a subsidiary of Kiewit Corporation, provides a wide range of construction services to the oil and gas market. Based in Houston, TX and Calgary, AB, Canada, Kiewit Energy conducts construction projects in the domestic United States and Canada. Our offices support a growing list of oil and gas related construction projects including: oil sands processing facilities, refinery expansions, gas plant expansions, co-generation facilities, ethanol production facilities, spool fabrication facilities, SAGD facilities, and LNG onshore and offshore facilities. The oil and gas markets are expanding rapidly in Canada and experiencing new challenges in the United States. Over the next decade, Kiewit Energy will continue to be a key constructor in these markets. Internet address is www.kiewit.com/energy.
About Delta-T Corporation
Headquartered in Williamsburg, VA, Delta-T is a design-build firm that provides alcohol plants, systems, and services to the fuel, beverage, industrial, and pharmaceutical markets. Delta-T is known for pioneering many of the recent innovations currently in use by the newest generation of biorefineries to produce fuel ethanol, including the commercialization of molecular sieve dehydration, zero discharge of process wastewater, and more efficient refining/purification systems to produce high quality alcohols. Delta-T has provided alcohol production, dehydration, and purification solutions to more than 110 clients on five continents. Delta-T Corporation is located at 323 Alexander Lee Parkway, Williamsburg, VA 23185, USA. Telephone (757) 220-2955. Internet address is www.deltatcorp.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 and biodiesel tax incentives;
-- Regulation currently proposed and/or under consideration which
may increase the existing renewable fuel standard and other
legislation mandating the usage of ethanol or biodiesel;
-- 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, biodiesel 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;
* The impact on margins from a change in the relationship between
prices received from the sale of co-products and the price paid for
corn;
* 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 any 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;
* 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; and
* Fluctuations in earnings resulting from increases or decreases in
the value of ethanol or biodiesel inventory