OMAHA, NEBRASKA, U.S. — Subsidiaries of The Gavilon Group, LLC announced on Aug. 8 that it has entered into multi-service commercial agreements with subsidiaries of Advanced BioEnergy, LLC with dry mill ethanol facilities located in Fairmont, Nebraska, U.S.; Aberdeen, South Dakota, U.S.; and Huron, South Dakota, U.S. Under the terms of the agreements, Gavilon will be Advanced BioEnergy’s exclusive ethanol marketer for all three facilities effective immediately. It will also be the exclusive marketer for distillers dried grains with solubles (DDGS) for the Aberdeen facility effective Aug. 1, 2013.
“We look forward to working with a strategic partner to manage our marketing needs,” said Richard Peterson, chief executive officer of Advanced BioEnergy. “Gavilon offers a comprehensive solution that will help us achieve our risk management objectives in a competitive market.”
“We are extremely pleased to be selected as Advanced BioEnergy’s exclusive marketer of ethanol and dried distillers grains,” said Randy Ives, director of Ethanol Services at Gavilon. “This agreement leverages our core capabilities and will enable Advanced BioEnergy to tap into Gavilon’s extensive agricultural and energy networks. By utilizing Gavilon’s expertise in the commodity markets that drive ethanol production, Advanced BioEnergy will be able to more effectively manage its processing margins in both the spot and forward markets.”
Advanced BioEnergy annually produces 110 million gallons of ethanol in Fairmont, 50 million gallons of ethanol in Aberdeen and 30 million gallons of ethanol in Huron. Production of distillers dried grains at Aberdeen is approximately 130,000 tons annually.