Zörbig/Leipzig, May 1, 2023 – VERBIO North America Holdings Corp., a 100 percent subsidiary of VERBIO Vereinigte BioEnergie AG, has signed a contract today with MERCURIA INVESTMENTS US, INC. to purchase its 100 percent equity interest in South Bend Ethanol, LLC, a limited liability company that owns and operates an ethanol plant in South Bend/Indiana, USA. The ethanol plant has an annual production capacity of approximately 250.000 tonnes (approx. 85 million gallons) of ethanol.
VERBIO plans to expand the ethanol plant based on the model of the German biorefineries to an integrated RNG and bioethanol production with an annual production capacity of approximately 850.000 MWh of Renewable Natural Gas (RNG) and 250.000 tonnes of ethanol. The total investment is expected to amount to approximately USD 230 million.
Through this transaction, VERBIO continues its internationalization strategy with regard to the ambitious decarbonization market in North America. The project costs will be financed from the freely available cash as well as credit lines of VERBIO AG. The Inflation Reduction Act, passed by the United States Congress and enacted on August 16, 2022, contains provisions that will benefit the project. The provisions provide for tax credits for investments in climate protection and for the production of climate-friendly products.
VERBIO’s management expects the Company‘s net financial assets to remain in positive territory by the end of the fiscal year 2022/2023.
Information about VERBIO Vereinigte BioEnergie AG (VERBIO)
VERBIO AG is one of the leading independent bioenergy manufacturers, and is also the only large-scale producer of biodiesel, bioethanol and biomethane in Europe. The Group has approximately 1,000 employees at its locations in Saxony, Saxony-Anhalt and Brandenburg as well as at its foreign subsidiaries in India, the USA, Canada, Poland and Hungary. VERBIO concentrates on the use of internally developed innovative technologies and efficient energy-saving production processes. VERBIO’s biofuels achieve CO2 savings of up to 90 percent compared to petrol or diesel. The Group’s annual production capacity amounts to approximately 660,000 tonnes of biodiesel, 300,000 tonnes of bioethanol and 1,300 gigawatt hours of biomethane. In addition, VERBIO manufactures biofertiliser and animal feed for agricultural use as well as high-value raw materials for the pharmaceutical, cosmetic and foodstuff industries. With its innovative processes and highly efficient production plants, VERBIO is a technology leader in the biofuels market. The VERBIO share (ISIN DE000A0JL9W6/WKN A0JL9W) has been listed in the prime standard segment of the Frankfurt Stock Exchange since October 2006.
This publication contains forward-looking statements that are based on assumptions and estimates made by the management of VERBIO Vereinigte BioEnergie AG. Although the Company’s management is of the opinion that these assumptions and estimations are realistic, actual future developments and actual future results may differ significantly from these assumptions and estimates due to a variety of factors. For example, these factors can include changes to the overall economic climate, changes to the legal and regulatory framework in Germany and the EU, and changes in the industry. VERBIO can give no guarantee and accepts no liability as to whether future development and the results actually achieved in future will match the assumptions and estimates made in this publication