Today, Green Plains Renewable Energy, Inc. acquired 51% of Houston-based biofuel terminal operator Blendstar, LLC for $9.0 million. Blendstar currently operates terminal facilities in Oklahoma City, Little Rock, Nashville, Knoxville, Louisville and Birmingham, and has plans to build terminals in Collins, Mississippi and Shreveport, Louisiana.
Todd Becker, Chief Executive Officer, stated, “Through Blendstar, we are making an important investment in downstream biofuel enterprises. The Blendstar platform allows customers to source, store and blend ethanol and biodiesel to meet growing demand, now and in the future. Green Plains will continue to be a Blendstar customer, and the relationship should benefit Green Plains’ growing third-party marketing business.”
Blendstar facilities currently have splash blending and full-load terminal throughput capacity exceeding 200 million gallons per year. Green Plains anticipates producing, marketing and/or distributing approximately 635 million gallons of ethanol annually.
“Blendstar has an outstanding management team with decades of expertise and experience in fuel marketing, logistics and transportation,” added Becker. “The management team also holds a significant ownership position. Blendstar will continue to be an independent service provider for the industry, operated by the existing team in Houston.”
“There is a current lack of ethanol and biodiesel blending infrastructure in many markets,” said Matt Griswold, President of Blendstar. “Blendstar occupies an important market position, serving as first mover into key geographic areas and underserved markets.”
“Blendstar will be an important component of Green Plains’ vertical integration strategy,” said Becker. “Green Plains now has positions throughout the ethanol value chain, beginning in the farm fields with our agronomy and grain handling operations, and ending with the fuel retailers utilizing Blendstar’s blending facilities.”