Completion of the transaction is subject to customary closing conditions and is expected to occur in November. VNA intends to install facilities to produce renewable natural gas (RNG) made from corn stover and other cellulosic crop residues at the site.
This would be VERBIO’s third production facility devoted to this cellulosic technology – in 2014, the company commissioned its first facility in Schwedt, Germany, and its second facility in Pinnow, Germany is currently being commissioned.
VERBIO is a leading manufacturer in the German biomethane and biofuels market running four production facilities producing around 27 million gallons of RNG, 140 million gallons of biodiesel and 87 million gallons of ethanol per year. The company focuses on developing and installing new technologies to produce first and second generation biofuels from biomass and crop residues.
VERBIO CEO Claus Sauter said: “The DuPont facility in Nevada, Iowa offers excellent infrastructure to construct our first RNG facility outside Germany. We can use part of the installed equipment for our production and there is a solid base of local farmers from whom to procure the raw materials. Once the plant is in operation, it offers the Nevada, IA community new agricultural revenue streams, new employment opportunities and new sources of tax revenues.”
DuPont Biofuels, global business director Jan Koninckx said: “We’re very confident in VNA’s ability to take over operations of the Nevada plant. This community has been very supportive during our time in Story County. We thank the many people who were instrumental to our operations, and we wish VNA well.”
Following its merger with Dow in last year, DuPont announced a strategic shift within the cellulosic biofuels market and began to seek a buyer for the biorefinery. DuPont continues to participate in the overall biofuels market through specialty offerings, including both first- and second-generation biofuel enzymes and engineered yeast solutions that improve yield and productivity for biofuel producers.
VNA is working on plans to start construction of the RNG plant in spring next year and begin commercial production of renewable transportation fuel by summer 2020.
Source: Company Press Release
