Green Plains forms JV to construct ethanol terminal in Texas

Source: By Biofuels International • Posted: Wednesday, June 22, 2016

US ethanol producer Green Plains and Jefferson Gulf Coast Energy Partners, a subsidiary of Fortress Transportation and Infrastructure Investors, have formed a joint venture to construct and operate a fuels terminal.

To be located at Jefferson’s existing Beaumont, Texas, terminal, the 50/50 JV is expected to invest approximately $55 million (€48.5m) in its Phase I development which will initially focus on storage and throughput capabilities for multiple grades of ethanol.

Further development of the JV’s capabilities is expected to add the ability to manage multiple liquid products for import and export, including liquid hydrocarbons, vegetable oils, and other non-liquid commodities.

Todd Becker, president and CEO of Green Plains, said the project has been undertaken in response to increased demand for ethanol products both globally and domestically in the US.

“We want to create a world class solution to service our customers. Access to three Class I railroads, barges and inbound/outbound vessels positions the terminal with transportation and cost advantages that will make this a successful partnership,” Becker said.

Chris Fisher, port director and CEO of the Port of Beaumont, said he expects the terminal to become “one of the most versatile ethanol hubs in the country” and for it to deliver additional economic benefit to the area.

The terminal will have direct access to multiple transportation options including Aframax vessels, inland and coastwise barges, trucks, and unit trains with direct mainline service from the Union Pacific, BNSF, and KCS railroads.

Phase I development will leverage existing infrastructure at the Jefferson terminal and is expected to include approximately 500,000 barrels of storage with expansion potential of up to one million barrels.

Construction of Phase I is currently expected to take approximately nine months with completion projected in the second quarter of 2017.