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.
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