Hawkeye Renewables has signed an agreement to sell its two ethanol plants located in Iowa Falls and Fairbank in the US to Flint Hills Resources Renewables in an all-cash transaction.

The company has received the requisite consent from its equity holders to approve the transaction, which is expected to close early in the first quarter of 2011.

Originally constructed as a 50 million-gallon-per-year plant in November 2004, the Iowa Falls ethanol plant doubled its capacity to 100 million gallons per year in March 2006.

The Fairbank plant was built in 2006 and is capable of producing 115 million gallons of ethanol annually.

Hawkeye Renewables is an ethanol producer that specializes in ethanol and dried distiller grains, with plants in Iowa Falls and Fairbank, Iowa.