BIOF Stock: BioFuel Plants Hit Provisional Acceptance
DENVER, Sept. 16 /PRNewswire-FirstCall/ -- BioFuel Energy Corp.
(Nasdaq: BIOF stock) announced today that both of its 115 million gallons a year
ethanol plants had met Provisional Acceptance, the first step in their final
commissioning. The plants began production in June and have been undergoing
performance testing since then. Provisional Acceptance is the first of three
tests required under the Company's turn-key construction contracts with TIC
(The Industrial Company). To pass, the plants had to operate at or above
design capacity for seven days while meeting specified quality, efficiency and
environmental standards. With Provisional Acceptance, operational control of
the plants passed to the Company from TIC. A punch list of required repairs
has been agreed upon with TIC and is being addressed. Full completion of the
facilities along with final testing required under the construction contracts
should occur within sixty to ninety days.
Daniel J. Simon, the Company's Executive Vice President and Chief
Operating Officer, has had direct responsibility for overseeing the plants'
construction from inception. Commenting on the announcement, he said, 'We are
very pleased to have reached this stage of the construction process and to
finally be in control of our plants. TIC, Delta T and our operations staff
have all made an exceptional effort to design and build the best possible
ethanol production facilities. As soon as construction is complete, we will
begin looking for ways to enhance our plants' efficiency so that we develop
and maintain a competitive advantage in what obviously remains a challenging
environment for the industry. While a good number of start-up issues remain,
we are confident we can achieve reliable production at full capacity before
year-end.'
BioFuel's production facilities are located in Wood River, Nebraska and
Fairmont, Minnesota. The plants were constructed next to existing Cargill,
Inc. grain elevators and adjacent to Union Pacific's main rail lines. When
operating at nameplate capacity, the Company's plants are expected to be able
to produce 230 million gallons of fuel grade ethanol and up to 720,000 tons of
dried distillers' grain annually. A portion of distillers' grain may be sold
as wet distillers' grain based on market conditions. BioFuel has long-term
contracts with Cargill to handle corn procurement and the sale of ethanol and
distillers' grain for its plants.
This release contains certain forward-looking statements within the
meaning of the Federal securities laws. Such statements are based on
management's current expectations, estimates and projections, which are
subject to a wide range of uncertainties and business risks. Forward-looking
statements should not be read as a guarantee of future performance or results,
and will not necessarily be accurate indications of whether, or the times by
which, our performance or results may be achieved. Factors that could cause
actual results to differ from those anticipated are discussed in our Exchange
Act filings and our Annual Report on Form 10-K.
Contact: Kelly G. Maguire For more information: Vice President - Finance and www.bfenergy.com Chief Financial Officer (303) 592-8110 kmaguire@bfenergy.com
