In a sign of confidence in the biofuel industry, the U.S.’s largest farmer-owned co-op, CHS Inc. is re-entering ethanol production with the goal of expanding global sales. As the first move toward a new strategy, CHS is acquiring Illinois River Energy from London-based Sinav Ltd which has owned the plant since 2012. As part of its global commodity business, CHS markets ethanol and traded distiller grains, blends ethanol with gasoline, and sells fuel at 1,400 Cenex-brand stations across the U.S. however this is the third attempt by the co-op at entering production. In the 1980’s CHS and Archer Daniels Midland owned a small first generation ethanol plant but CHS sold its interest in 1991 and in 2006 CHS acquired 24% of U.S. BioEnergy but had to write off $74 million of the investment after U.S. BioEnergy merged with VeraSun and later declared bankruptcy. CHS, which had $44.5 billion in revenues in 2013 has not disclosed the terms of the deal but does aim to continue expanding its presence in the sector through the production and exportation of both ethanol and distillers grains.
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