DALLAS -- Dallas-based White Energy Holding Company has acquired a 100-million-gallon-per-year greenfield ethanol project from The Scoular Company.



The plant, located in Plainview, Texas, will be a "near twin" of White Energy's other ethanol facility under construction in Hereford, Texas. The Plainview facility is fully permitted and construction is underway, with completion targeted for early 2008.



White Energy also owns an operating 45-MGPY plant in Russell, Kansas, which, when combined with output of the two Texas plants, will bring White Energy's total production capacity to 245 MGPY.



In addition to acquiring the Plainview site, White Energy has formed a long-term strategic relationship with Scoular, based in Omaha, Neb. Scoular will provide grain procurement and distillers grain marketing services for selected White Energy plants and comprehensive risk management services for the company.



"This acquisition fits well into our expansion plans, and, with the addition of Scoular's agricultural transportation and distribution expertise, White Energy has significantly elevated its competitive position in the renewable fuels market," said Kevin D. Kuykendall, White Energy's CEO. "The synergies offered by the close proximity of Hereford and Plainview will enable us to serve market demand in the West and Southwest and establish White Energy as a leading ethanol producer and distributor in the U.S."



White Energy continues to pursue its goal of becoming one of the top ethanol producers by the end of 2008. Kuykendall credits the Scoular partnership with adding depth in specific facets of its ethanol business.



"Within the next couple of years, White Energy plans to own and operate several ethanol facilities located close to major ethanol consumption markets," he said. "Ethanol and other renewable fuels offer important solutions to our nation's growing energy problem, and White Energy is committed to being an industry leader."



With the Hereford plant only 70 miles away, Kuykendall sees Plainview as an ideal location with many advantages, such as shared management, marketing and logistical resources. The two plants are served by the same BNSF rail line and have nearly identical, state-of-the-art designs by ICM Inc. Fagen Inc. is under contract and has begun construction on both plants.



According to Kuykendall, once completed, the Plainview plant will be one of a handful in the country that can simultaneously unload 110 rail cars of grain while loading out 95 rail cars of ethanol. Located in the heart of Texas cattle country, Plainview will provide distillers wet grain (DWG) byproduct to area feedlots and dairy operations, although both plants will also be equipped to dry the distillers grain for shipment to more distant markets.



This ability to load and unload products concurrently coupled with selling DWG locally provides White Energy with both transportation and energy cost advantages, further reinforcing the company's low-cost producer strategy.

Dallas-based White Energy Holding Company LLC was founded to develop, fund and manage business opportunities focused on renewable energy sources. During the next several years, White Energy plans to be a top producer of renewable energy, securing production capacity through acquisitions and greenfield construction.



The Scoular Company of Omaha is a century-old agribusiness company committed to buying, selling, storing, handling and transporting grain, feed and food ingredients worldwide. Scoular is an independent investor and developer in renewable fuels, as well as a comprehensive service provider to the industry.



SOURCE: White Energy Holding Company LLC via Business Wire.