Poet buys Flint Hills Resources’ 6 ethanol plants, biofuel assets

By Erin Voegele | June 01, 2021

Poet LLC announced on June 1 it has acquired the ethanol assets of Flint Hills Resources in their entirety, including six ethanol plants, two terminals and Flint Hill’s NexPro animal feed ingredients business.

The purchase boosts Poet’s production capacity by 40 percent and makes the company the world’s largest producer of biofuels. Poet will now operate 33 bioprocessing facilities across eight states with a combined annual capacity of 3 billion gallons per year.

The six ethanol plants include a 130 MMgy facility in Arthur, Iowa; a 125 MMgy facility in Fairbank, Iowa; a 125 MMgy facility in Fairmont, Nebraska; a 100 MMgy facility in Iowa Falls, Iowa; a 125 MMgy facility in Menlo, Iowa; and a 125 MMgy facility in Shell Rock, Iowa, according to the Ethanol Producer Magazine online plant map. The two terminals are located in Texas and Georgia.

According to Flint Hills, the combined capacity of the six plants is approximately 800 MMgy. The facilities also produce 1.5 million tons of distillers grains and 170 million pounds of corn oil annually.

“This acquisition will increase Poet’s ability to bring even more high-quality, plant-based biofuels and bioproducts to the world—allowing us to have an even bigger impact on fighting climate change and cleaning our air,” said Jeff Broin, founder and CEO of Poet.

“We’ve been a leader in the biofuels business for 33 years and have never wavered in our belief in the power of agriculture and biofuels to offer the most accessible, near-term solution to climate change. With this move, we’re demonstrating our commitment to the future of low-carbon, plant-based liquid fuels,” Broin added.

“These high-quality bioprocessing facilities have been well-maintained and strategically compliment Poet’s current geographic footprint—allowing us new flexibility and greater market access,” said Jeff Lautt, president and chief operating officer at Poet. “We look forward to adding these new locations to our portfolio and to the many opportunities that lie ahead as a result of this significant addition to the Poet network.”

“We are on the cusp of a new sustainable economy that will be powered by renewable energy. Bioethanol is critical to this new economy and will continue to be so for years to come,” said Bob Casper, chief commercial officer at Poet.

The sales agreement and closing occurred on June 1, approximately two weeks after Poet disclosed it was in exclusive discussions over the possible sale of Flint Hills Resources’ biofuel business. The purchase price is not being disclosed.

“We thank our employees who have supported our biofuels business since we acquired our first ethanol plants 10 years ago,” said Jeff Ramsey, CEO of Flint Hills Resources.  “They helped transform the business, making our ethanol operations best in class and among the most competitive in the industry. 

Poet is one of the world’s largest biofuels producers and is well positioned to advance the business.”