Green Plains to start high protein production in a second facility in 2021
Thursday, July 30, 2020
Green Plains Inc. chose Green Plains Wood River LLC as the second location for the installation of high protein production using Fluid Quip Technologies’ patented Maximized Stillage Co-Products (MSCTM) system. Based on current schedules, high protein ingredient production at Wood River is expected to begin during the second quarter of 2021. The company also received final credit approval for a $75 million for a 15-year term loan facility that will support the execution of its protein strategy.
“This financing represents the next step in our transformation to Green Plains 2.0,” said Todd Becker, president and chief executive officer. “Securing long-term strategic project-based debt enables us to accelerate protein expansion at Wood River with a third location to be announced, and more importantly validates the strategic direction of the company.”
With the benefits provided by Project 24, Wood River runs at industry-leading operating efficiency, now capable of producing 130 million gallons per year with operating expenses as low as $0.22 per gallon, and is a perfect platform for the addition of protein production. Because of the facility’s existing drying capabilities, the investment is expected to be about $50 million with an initial uplift of 15 to 20 cents per gallon to the overall margin structure.
“We are excited to add Fluid Quip’s high protein feed ingredient technology to a second location in our platform,” added Becker. “An additional 80,000 tons of greater than 50% protein production capacity adds redundancy to our supply chain, allowing us to offer customers a premium product, at scale, with the confidence of full reliability. Given the success we’ve experienced at Shenandoah, we expect Wood River to deliver optimal results and believe the product will be fully contracted prior to startup.”
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