Osage puts Virginia ethanol plant up for sale
Osage Bio Energy announced May 23 that, after a review of strategic alternatives, its board of directors has decided to market the company for sale. The company will not start production at its Appomattox Bio Energy ethanol plant in Hopewell, Va. as originally scheduled, due to unfavorable market conditions.
As a result of this action, the company will implement a reduction in force effective May 25. A core team of employees will continue to work at the plant to help facilitate the sale and maintain the condition of the assets for prospective buyers. The Appomattox Bio Energy facility is fully functional and production-ready for the new owners.
“Osage Bio Energy would like to recognize and acknowledge the efforts of the many employees, community leaders and supporters that came together to develop this project over the past few years,” said Heather Scott, company spokesperson. “Appomattox Bio Energy is a first of its kind facility in the United States and represents a unique opportunity for multi-feedstock ethanol production to its future owner.”
Osage Bio Energy was founded in 2007 with the goal of developing and building the first commercial scale ethanol plant capable of processing multiple feedstocks, including winter barley. The site for the plant, Appomattox Bio Energy, was selected in Hopewell, Va., and a groundbreaking was held in October 2008. Construction commenced soon after and mechanical completion was achieved in August 2010.