Ethanol acquisition may benefit biobased diesel feedstock availability

An acquisition in the ethanol coproduct technology space may end up benefiting feedstock availability for the biobased diesel industry. Green Plains Inc., a large ethanol producer with a dozen plants, announced in early January that it has acquired a majority interest in Fluid Quip Technologies in a joint transaction led by Ospraie Management LLC.

Fluid Quip provides custom technologies and engineering services to biofuel and biochemical industries, including process optimization, yield improvement and advanced coproduct technologies. The company has commercialized multiple technologies to enhance the ethanol process.

Todd Becker, president and chief executive officer of Green Plains, said, “This partnership will help advance the installation of Ultra-High Protein technology across our platform, significantly increase our renewable corn oil production to participate in the growing low carbon fuel markets and the renewable diesel value chain, further drive reduction of our operating expenses and significantly expand our product offerings.”

Green Plains says it has made strategic investments over the past two years to transform its business from an ethanol and commodities processor to a leading technology-focused producer of sustainable, value-added ingredient solutions.

The partnership will retain all Fluid Quip employees. As part of the deal, Ospraie acquired 550,000 warrants for Green Plains stock (each warrant equal to one share of stock) with a strike price of $22 per share.