Green Plains to Sell Hereford Plant

来源:Green Plains

Green Plains Inc. announces that its subsidiary, Green Plains Hereford LLC, has entered into an asset purchase agreement with Hereford Ethanol Partners, L.P. to sell its 100 million gallon ethanol plant located in Hereford, TX for $39 million, plus working capital, and an earnout provision of up to $75 million related to certain value enhancement opportunities, including future earnings from Low Carbon Fuel Standard credits.

“The sale of the Hereford ethanol facility allows us to reallocate capital to support the accelerated buildout of our Ultra-High Protein technology and continue our total transformation to an ag-tech focused company,” says Todd Becker, president and CEO. “We determined that this location was not optimal for our growing focus on sustainable proteins and novel ingredients and were pleased to find a partner interested in pursuing several identified carbon capture opportunities. In addition, this location can be further optimized to lower carbon intensity scores which will benefit our shareholders in the future, if and when realized.”

In consideration for the assets, Green Plains Hereford LLC has entered into an earnout agreement with Hereford Ethanol Partners, L.P., to accelerate the consummation of known carbon sequestration opportunities.

绿色平原将获得与碳捕获和隔离以及其他注意事项有关的未来收益的一部分，估计每年为10年，每年为750万美元。共享协议将从完成生物融资的升级后的第一个整个季度开始，该升级预计将需要大约24个月的时间。

绿色平原赫里福德有限责任公司还与Green Plains Partners LP及其分支机构签订了一项资产购买协议，以获取存储和运输资产以及与Hereford Ethanol工厂相关的铁路车租赁的分配，以1000万美元的价格使用，这将用于支付。the partnership’s debt. The minimum volume commitment associated with the throughput services agreement will be amended to 232.45 million gallons/quarter.

不包括与赚钱规定有关的价值，在收到时将被确认，绿色平原将记录与交易有关的约2300万美元的税前，非现金费用。预计两项交易将在接下来的30天内完成。购买协议应遵守习惯的关闭条件，并包含普通和习惯的陈述，担保和赔偿义务。

Ocean Park acted as the exclusive financial advisor to Green Plains in connection with the transaction.

About Hereford Ethanol Partners, L.P.
Hereford Ethanol Partners, L.P. is a newly formed, wholly owned subsidiary of a privately-held Texas investment ‎group that has maintained strategic investments in agriculture and energy infrastructure and operations for over 50 years. It is expected that the ‎facility will resume production in Q2 2021. ‎