Advanced BioEnergy said its initial plans call for the buildout of 16 days of storage, with the expansion opportunity to add 20 days of storage at a later date. The grain receiving facility is expected to include a 20,000-bushel-per-hour corn receiving pit and will use RFID card recognition technology.

The company also operates an ethanol plant in Huron, South Dakota, U.S., and intends to review potential options to enhance the grain receiving and storage capabilities at that plant.

Richard Peterson, chief executive officer

“We are excited to offer another direct selling option to local farmers, including high-speed dumping capability to allow for quick in-and-out times,” said Richard Peterson, chief executive officer. “We expect to break ground in June of this year and complete construction by July 2019.”

Advanced BioEnergy employs 54 people at its Aberdeen and Huron ethanol plants, which combined grind about 28 million bushels of corn per year.

The company has sourced 100% of its annual corn needs from a single commercial partner under a third-party supply agreement, but the agreement is set to expire in November 2019. In addition to the construction project, Advanced BioEnergy said it is considering developing a farmer-direct purchase program. The company said it plans to supplement the program with commercial relationships to fulfill its corn supply needs.

“The opportunity to improve our bottom line is the primary driver of the project,” Peterson said. “We have made several new investments in each of our plants over the past several years, and view this project as a continuation of our goal to invest capital where we believe it enhances unit holder value long term.”

Advanced BioEnergy’s two plants have a combined production capacity of approximately 85 million gallons of ethanol per year, produce over 220,000 tons per year of distillers’ grains (dry matter basis), and over 19 million pounds of corn oil per year.