PEKIN, Ill., Sept. 28, 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 quality construction permit for construction of its previously announced ethanol plant at Aurora, Nebraska.
The Nebraska Department of Environmental Quality ("NDEQ") issued the air quality construction permit on September 27, 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 $55.4 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 quality construction permit.
The plant site is located on 86 acres of land in Aurora, Nebraska, which is located approximately 75 miles west of Lincoln, Nebraska. The site is adjacent to an existing 50 million gallon ethanol facility operated by Nebraska Energy, LLC, of which Aventine is a majority partner/owner. 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.
In connection with the purchase of the land in 2006, Aventine signed agreements with the Aurora Cooperative relating to the development of the Aurora West site, which included the purchased land, and a grain supply agreement and a marketing agreement whereby the Aurora Cooperative would be the sole grain supplier for the new ethanol plant, as well as a marketer of the syrup and the sole marketer of wet distiller's grain with solubles produced by the facility. Nebraska Energy's existing grain supply and marketing arrangements with Aurora Cooperative were also extended.
Ron Miller, Aventine's President and Chief Executive Officer, said, "With today's permit from the NDEQ, we have now received the necessary air permits for both of our capacity expansions at Aurora and Mt. Vernon, IN. This puts us another step closer to more than doubling our nameplate ethanol production capacity from 207 million gallons annually to 433 million gallons annually." Miller continued, "We have a long history of working with the Aurora Cooperative, and we look forward to expanding upon that relationship with the new facility. As demand for ethanol continues to grow, the Aurora West complex will be important in helping to supply America's motor fuel needs."
George Hohwieler, President and CEO of the Aurora Cooperative, said, "We at the Aurora Cooperative want to congratulate Aventine on receiving their NDEQ air quality construction permit. This new ethanol facility, along with Nebraska Energy, makes this site one of the largest ethanol production complexes in the country. This complex will further assist farmers in our Cooperative in providing an additional outlet for their corn, thereby benefiting the entire region."
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 the Aurora Cooperative
Based in Aurora, NE since 1908, the Aurora Cooperative is a world-class, multi-purpose agricultural cooperative providing service and expertise in grain, agronomy, feed and energy. The Aurora Cooperative has locations in 32 communities in south central Nebraska and northern Kansas. Internet address is www.aurora.coop.
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.