Granite Falls Energy, LLC Finalizes Amendment to its Ethanol Marketing Agreement with Eco-Energy LLC
October 01, 2019 at 03:51 pm EDT
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On September 26, 2019, Granite Falls Energy, LLC (the Company) finalized Amendment No. 5 (the Amendment) to its Ethanol Marketing Agreement (the Marketing Agreement) with Eco-Energy LLC (Eco-Energy). The Amendment provides for an extension of the term of the Marketing Agreement through December 31, 2020, with automatic renewals for additional consecutive terms of one year unless either party provides written notice to the other party at least three months prior to the end of the term or the renewal term. Under the Marketing Agreement, as amended by the Amendment, Eco-Energy will continue to purchase the entire ethanol output of the Companys Granite Falls, Minnesota, ethanol production plant. The Amendment also provides for certain negotiated changes to the marketing fees payable to Eco-Energy and payment terms under the Marketing Agreement, effective as of October 1, 2019.
Granite Falls Energy, LLC is engaged in the production and sale of ethanol and its co-products (wet, modified wet and dried distiller's grains, corn oil and corn syrup) locally and throughout the continental United States. The principal products from ethanol production at the Company's plant and its subsidiary, Heron Lake BioEnergy, LLC (HLBEs) plant are fuel-grade ethanol, distiller grains, and non-edible corn oil. In addition, HLBE's plant also includes corn syrup and natural gas pipeline operations. It also extracts non-edible crude corn oil. It sells distillers grains (DDGS) as animal feed for beef and dairy cattle, poultry and hogs. Its corn oil is primarily sold to diesel manufacturers and, to a lesser extent, feed lot and poultry markets. Its ethanol production operations are carried out at its ethanol plant located in Granite Falls, Minnesota, and at the ethanol plant operated by HLBE located near Heron Lake, Minnesota. It distributes its products through third party marketers.