German company to convert South Bend’s ethanol plant into biorefinery - WNDU
German company to convert South Bend’s ethanol plant into biorefinery
SOUTH BEND, Ind. (WNDU) - South Bend’s ethanol plant is being purchased by a German company called VERBIO, which will convert the facility into a biorefinery.
The total investment will approach $230 million.
The plant will continue to produce ethanol, but after the conversion, it’ll also produce renewable natural gas, using some of the byproducts of ethanol production.
In 2012, the then-owners of the plant filed for Chapter 11 bankruptcy.
Suddenly, the rush to combat climate change has changed the business climate here and attracted a “green giant.”
“We’re excited about the skillset they (VERBIO) bring. They are the industry leader in the renewable gas generation process, so it’s exciting to see not only a new owner for the ethanol plant, that is willing to make investments, but also expanding into this new field of energy production,” said South Bend’s Director of Community Investment, Caleb Bauer.
VERBIO has more than 10 years of successful production at its plants in Germany.
In a written statement, VERBIO officials say they have “no choice but to invest even more in the USA and take advantage of the opportunities offered by the IRA (Inflation Reduction Act). Europe is currently sleeping through the next big technology wave.”
“Nationally, there’s a lot of focus on how to make more efficient use, and how to generate energy different ways, and so some federal dollars have helped, certainly helped catapult that development and in this case our community is going to take advantage with sort of state of the art technology on energy production,” offered South Bend Regional Chamber President and CEO. Jeff Rea.
The renewable natural gas produced in South Bend will be fed to the regional natural gas grid and fill the needs of transportation and industry.
The $233 million investment provides some assurance that the future of the plant is secure.
“Upward of $230 million in private investment, we’re thrilled with VERBIO’S vote of confidence here in South Bend. You know, I think the ethanol plant has gone through phases where there’s been questions about its future, and I think that this really cements and secures it for the future, that we’ll see ethanol and renewable natural gas generated in South Bend long into the future here,” said Bauer.
VERBIO has one other U.S. plant at present. It is located in Iowa.
A requested tax abatement for the South Bend project will be introduced before the South Bend Common Council at Monday’s meeting.
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