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Marathon Oil Exploring Ethanol Joint Venture; First Plant to Have 110M Gallon Capacity
10 July 2006
Marathon Oil Corporation and The Andersons, Inc. have signed a letter of intent which could lead to the formation of a 50/50 joint venture that would construct and operate a number of ethanol plants in the US. The formation of the joint venture and other related activities are subject to approval by each company's board of directors and the execution of definitive agreements.
The initial plant from the JV is expected to have a nameplate annual production capacity of 110 million gallons of ethanol.
The Andersons will provide day-to-day management of the ethanol plants, as well as corn origination, risk management, and dry distillers grain and ethanol marketing services. Site selection is expected to be finalized soon. Timing of construction is contingent upon selection, regulatory requirements, permitting and economic incentives.
Marathon is one of the nation’s leading blenders of ethanol in gasoline and has been doing so for more than 15 years. We see the partnership with The Andersons as an important step in maintaining the reliability of future ethanol supplies.
—Gary R. Heminger, executive vice president of Marathon Oil Corporation
Marathon is the fourth-largest US-based fully integrated international energy company engaged in exploration and production; integrated gas; and refining, marketing and transportation operations. The company is the fifth-largest refiner in the US with 974,000 barrels-per-day of crude processing capacity in its seven-refinery system.
The Andersons, Inc. is a diversified company with interests in the grain, ethanol and plant nutrient sectors of US agriculture, as well as in railcar leasing and repair, turf products production, and general merchandise retailing.
July 10, 2006 in Ethanol | Permalink | Comments (6) | TrackBack (0)
Comments
Posted by: shaun mann | July 10, 2006 at 07:28 AM
Fuel ethanol futures on the Chicago Board of Trade are already listed as denatured. Fuel ethanol is shipped around as "E100" until it is splash blended at the distribution terminals, so there already is plently of low cost 200 proof alcohol sloshing around. I believe that the fuel is current denatured in order to avoid the typical "sin tax" excise placed on ethanol fit for human consumption.
Posted by: NBK-Boston | July 10, 2006 at 09:12 AM
Whatever happened to that article on biobutanol? It seemed like a smarter approach to bio renewable fuels than bioethanol? No?
Posted by: Toy Yoda | July 10, 2006 at 09:43 AM
Biobutanol does have it's merits, but ethanol has it's product recognition and tax benefits.
Posted by: allen Z | July 10, 2006 at 10:09 AM
It would be nice for Marathon Oil to use CO2 emissions for an experimental flute gas algae oil/biomass production scheme. They may get more out of it in the long run.
Posted by: allen Z | July 10, 2006 at 10:12 AM
I buy a lot of Ethanol from the Anderson's.
In the form of wine.
Their stores sell hardware and groceries. They have a wine section in the grocery portion. The selection is excellent, the prices are reasonable, and the personnel are knowledgeable, friendly and helpful. Great Place. Highly Recommended.
Posted by: Robert Schwartz | July 10, 2006 at 06:25 PM
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y'know another side-effect of all this investment in ethanol production is that there will be a huge amount of very low cost 200 proof alcohol being produced.
$4 for a gallon of hard liquor?
i imagine they'll be required to denature it, if E100 ever gets sold publicly.