Guardian Energy Heron Lake signed an agreement to acquire the ethanol production assets from Heron Lake BioEnergy in January 2013. This agreement included a 73% ownership stake in subsidiary Agrinatural Gas, the pipeline company formed to
construct, own, and operate a natural gas pipeline that provides natural gas to Heron Lake BioEnergy’s ethanol production facility through a connection with the natural gas pipeline facilities of Northern Border Pipeline Company in Cottonwood County, Minnesota.
Guardian and Heron Lake have not offered details about on why the transaction failed, reported Startribune.com.
Heron Lake BioEnergy, which reported a loss of $33m in fiscal 2012 and has a debt of $37.5m, plans to now raise fresh capital from its existing 1,100 investors.
Heron Lake BioEnergy CEO was quoted by Startribune.com as saying the plant will continue to operate.
The plant is located 20 miles northeast of Worthington in southwestern Minnesota.
