Conestoga Energy halts ethanol production at Texas facility

By Conestoga Energy Holdings LLC | November 08, 2018

Conestoga Energy Holdings LLC announced that it is temporarily halting production at Diamond Ethanol LLC located at Levelland, Texas.

“Given current ethanol production economics, we felt it in the best interest of our company and the industry to take gallons off the market until demand is comparable to supply," said Tom Willis, CEO of Conestoga Energy Holdings. “The domestic ethanol market is currently out of balance, with more supply than demand. While year-to-date exports have been robust, they are struggling to keep up with increased production. We applaud President Trump’s support of year-round sales of E15. This is a great step in increasing domestic demand, but it will take time to build the infrastructure needed to materially affect this increased production. In the meantime, this increase in supply has had a major impact on profitability resulting in lost revenue and compressed enterprise values within our industry. Crush economics and local crop availability will dictate when we bring the Levelland plant back online.”

Diamond Nutrition, a subsidiary of Diamond Ethanol, will continue production of Diamond Energy Cubes at the Levelland facility.

A subsidiary of Conestoga Energy Holdings, Conestoga Energy Partners LLC, has a management contract with Diamond Ethanol, LLC, and is a leader in the marketing and production of low-carbon renewable energy. Established in 2006, Conestoga Energy is based in Liberal, Kansas and operates three plants in Kansas and Texas. The company is also one of the leading producers of distiller grain products for animal feeds. To learn more visit