Renovation of Pratt ethanol plant expected in spring of 2013.
The Scoular Company announced today the December sale of a portion of its ownership interest in a 55-million gallon ethanol plant in Pratt, KS. Scoular sold a portion of its interest in Pratt Energy, LLC, to Pratt Biofuel Investors, LLC (PBI), which has related ownership to Calgren Renewable Fuels. PBI investors are based in California.
Scoular remains a part owner of Pratt Energy and will continue to operate the grain facility as well as procure all feedstock and provide distillers grains marketing services for the ethanol plant. Terms of the transaction were not announced.
Scoular acquired the Pratt ethanol plant and adjoining 1.8 million bushel shuttle facility in 2011 from Gateway Plant, LLC. Since that time, Scoular has been operating the grain facility while seeking a qualified operating partner for the ethanol plant.
"We're pleased to have selected PBI as our business partner in Pratt Energy. They bring the solid operating experience required to get this plant up and running, which will allow us to establish even closer relationships with feedstock suppliers, distillers grains consumers, and ethanol buyers," said John Heck, Scoular senior vice president.
Calgren successfully renovated a plant nearly identical to the Pratt plant and has been operating it in Pixley, Calif., since 2009. Lyle Schlyer, president of Calgren Renewable Fuels, was named president of Pratt Energy, effective as of the close of the recent transaction between Pratt Energy and PBI. Schlyer will provide general management and production expertise for the plants in both Pixley and Pratt.
PBI will take the lead in renovating the Pratt plant with completion expected in the spring of 2013. Jerry Schroeder, formerly with Calgren and now with PBI, is on site to manage the plant renovations and will become manager of the plant when it is operational. Heck said PBI initially will be looking for a few construction-related employees who might eventually transition to operators. He further noted that information about additional employment opportunities will be made available as soon as a start-up date is finalized.
Located on the Union Pacific Railroad, the Pratt facility is capable of loading 100-car trains of grain, dried distillers grains (DDG), and ethanol. It is part of Scoular's North American grain marketing network, a portion of which includes strategic investment in the state of Kansas. The 2011 Pratt acquisition brought the number of Scoular's Kansas facilities to eight, including shuttle train loading facilities at Coolidge, Downs, Salina, and Wellington. Scoular presently employs more than 150 employees in Kansas.
From more than 70 locations across North America, nearly 700 Scoular employees tailor risk-management solutions for their customers by buying, selling, storing, and transporting grain and ingredients for use in feed, food and renewable fuel markets worldwide.
For more information, visit www.scoular.com.