America’s fourth largest ethanol producer, Green Plains Renewable Energy, Inc., has boosted its income for the first half of the year to $24.3 million.
The achievement marks a turnaround for the company based in Omaha, Nebraska, which made an $8.7 million loss in the first six months of 2009.
Acquisition of two ethanol plants in its home state last July have helped swell revenues to $879.8 million so far in 2010, compared to $505.7 million in the sane period last year.
Green Plains brought its portfolio up to six ethanol plants by taking on facilities from the bankrupt VeraSun Energy, in Central City and Ord.
Q2, 2010
The most recent three months, up to June 30, saw income increasing to $8.7 million from just over $600,000 in Q2, 2009, with revenues growing from $284.7 million to $453.4 million.
$21 million went to reduce the firm’s debt, which ended the quarter below $390 million.
The second quarter of 2010 has seen the company expanding its grain storage capacity with the acquisition of five grain elevators in western Tennessee (see this BrighterEnergy.org story), which are set to see Green Plains’ total storage capacity reach 31.4 million bushels.
Todd Becker, President and Chief Executive Officer, said the improved performance had come from managing margins and keeping operating costs low.
Mr Becker said: “Ethanol production increased again this quarter to over 129 million gallons as a result of our incremental investment in process enhancements. We believe our six plants are now capable of sustained production of over 500 million gallons per year, which has driven our operating cost per gallon lower. We are continually looking for ways to become more efficient and more effective throughout our operations.”
Efficiency
Looking ahead, the company is in the process of installing corn oil extraction technology to improve the efficiency of energy conversion at its ethanol plants. The $18 million project is expected to boost revenues by between $15 million and $19 million a year from 2011.
And, Green Plains is pushing development of new technologies, including algae biofuels development (see this BrighterEnergy.org story).
Mr Becker said ethanol industry margins are now weaker than in the first half of the year, but said Green Plains expected to remain profitable during the rest of the year.
If the EPA approves a higher percentage of ethanol in transport fuel, the ethanol producer believes margins will recover.
The Green Plains President and CEO said: “We believe expanded mandates for renewable fuels in 2011 combined with the profitability of ethanol blending should allow for a recovery in margins for the remainder of the year. A favorable decision from the EPA on E15, allowing higher blend rates, would certainly be another factor in a stronger margin environment going forward.”
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