Highwater Ethanol, LLC and Nelson Baker Biotech, Inc. Executes Agreement for the Installation of System to Produce 20MGY Hydrous USP Grade Ethanol
September 01, 2020 at 03:41 pm EDT
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On August 26, 2020, Highwater Ethanol, LLC (the "Company") and Nelson Baker Biotech Inc. ("Nelson Baker") executed an agreement (the “Construction Agreement”) for the installation of a system to produce 20MGY Hydrous USP Grade Ethanol (the “Project”) which is used in the sanitizer market. The Construction Agreement provides for a fixed price which includes design, engineering and construction management. Nelson Baker will issue monthly applications for payment based on progress. Final payment is due upon final completion of the work. Nelson Baker warrants construction, materials and workmanship to be free from material defects for one year. Highwater may suspend work for a period of not more than 60 days, subject to a potential adjustment in price and contract time, and may terminate for cause after notice and opportunity to cure. Nelson Baker may stop work or terminate if Highwater suspends work for more than 60 days or if Highwater fails to make a payment when due after notice and opportunity to cure. Disputes are subject to mediation and binding arbitration. Highwater expects that construction will commence before the end of this fiscal year and the Project will be completed during the second fiscal quarter of 2021.
Highwater Ethanol, LLC is engaged in the production of ethanol and distillersâ grains at the plant. The Company operates through the manufacturing and marketing of fuel-grade ethanol and the co-products of the ethanol production process segment. The Company's products include Ethanol, Distillers Grains and Corn Oil. Its primary product is ethanol. Ethanol is ethyl alcohol, a fuel component made primarily from corn and various other grains. The ethanol it produces is manufactured from corn. The principal co-product of the ethanol production process is distillersâ grains, a high protein, high-energy animal feed supplement primarily marketed to the dairy, poultry, swine and beef industries. The corn oil that the Company produces is not food grade corn oil and therefore cannot be used for human consumption. Its corn oil can be used as the feedstock to produce biodiesel, as a feed ingredient and has other industrial uses.