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US ethanol companies merge

9th May, 2008

Nebraska-based Green Plains Renewable Energy and VBV together with its subsidiaries have entered into a merger agreement.

The companies will combine, creating a vertically-integrated ethanol company with expected operating capacity of 330 million gallons of ethanol a year.

'The proposed merger will create one of the nation's largest publicly-traded pure play ethanol companies, based on projected year-end capacity,' Wayne Hoovestol, Green Plains' CEO, says. 'Both companies will benefit from the increased scope, scale and critical mass afforded by this merger, which will substantially increase revenues, add value to existing enterprises and create new opportunities for growth.'

VBV holds majority interest in two companies that have ethanol plants under construction: Indiana Bio-Energy (IBE); and Ethanol Grain Processors (EGP) of Tennessee. Both plants are expected to be completed in Q3 2008. Once operational, the plants are expected to each produce at least 110 million of gallons of ethanol a year.

VBV is a joint venture company of Virgin Group and Ireland-based developer, financier and operator of public and environmental infrastructure NTR.