Buffalo Lake, Minn., plant to be sold at auction

By Erin Voegele | June 14, 2013

Purified Renewable Energy LLC’s 18 MMgy ethanol plant in Buffalo Lake, Minn., will sold at bankruptcy auction on August 8. The company filed for chapter 11 bankruptcy protection on March 25. A few weeks later, on April 8, PRE filed complaints against its former chief financial officer and former CEO, alleging the mishandling of company funds and property.

PRE purchased the plant from the Minnesota Energy cooperative in November 2012. PRE began operating the plant in June 2012 via an agreement formed with Minnesota Energy. That agreement included an option to purchase the facility, which was exercised in November.

Prior to its restart, the plant had been idle since late 2009. After restarting, the facility experienced two fires in 2012, one in September and the other in October. Operations were ceased to complete repairs.

The plant was originally constructed in 1997. Information published by IR1 Group LLC, which is handling the sale, notes that the facility features Katzen Technology. The corn-based, dry-mill plant sits on a 16-acre site and receives gran and ships ethanol and distillers grains via truck. Additional assets included in the sale are a 5.9-acre agricultural property adjacent to the plant and approximately 225,000 gallons of denatured ethanol storage.

Qualified bids for the auction, including a $125,000 deposit fee are due by July 31.