CarbonGreen acquires one of former VeraSun ethanol plants from AgStar; production restart in 30 days

In Michigan, Carbon Green Bio Energy and AgStar Financial Services have entered into an agreement for Carbon Green to purchase the 40 Mgy Woodbury ethanol plant that was aquired by AgStar in the VeraSun bankruptcy.

The plant was part of the US Bio group that was acquired by VeraSun last March before the company imploded over hedging difficulties and the collapsing price of ethanol.   AgStar will continue to lead a group of lenders in financing Carbon Green BioEnergy.

AgStar’s lending group continues ongoing discussions with buyers for the five other acquired ethanol plants.

Terms of the agreement are not being disclosed and it was not revealed if AgStar retained equity in the transaction, but sources close to the deal confirmed that “AgStar did whatever they could to make this transaction happen”. The plant is expected to resume production within 30 days.

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