Provista to Help Construct Birmingham Ethanol Terminal
April 24, 2008 — Provista Renewable Fuels Marketing, a limited liability company with CHS Inc. as its single member, announced today it has signed a letter of intent to partner with Trans Load Limited Inc., Birmingham, and Blendstar, LLC, The Woodlands, Texas in the construction and operation of an ethanol distribution center in Birmingham, Alabama.
Provista will be the exclusive supplier of renewable fuel products to the terminal. Trans Load and its Birmingham warehousing and transloading location, which is served by BNSF Railway, will be responsible for the placement and off-loading of rail cars. Blendstar LLC will handle engineering, construction, and back-office accounting of the new storage facility.
“We’re excited to partner with these two forward-thinking companies on a facility that will allow us to more quickly and efficiently move ethanol to our blender customers in the southeastern United States,” says John Litterio, Director of Renewable Fuels Wholesale Marketing, Provista. “Provista already markets 600 million gallons annually to all major U.S. ethanol markets. This project is the latest evidence of our strong commitment to strategically invest in infrastructure that helps ensure the long-term success of the renewable fuels industry. The Birmingham project will be engineered for a long term reliable supply of ethanol, not a quick solution to an immediate need to blend. We are grateful to be associated with Blendstar LLC’s experience with designing the reliability, safety, security, and back-office accounting for such an operation and for Trans Load Limited Inc’s longstanding local presence in the Birmingham community and strategically placed site on a BNSF spur. Provista’s vision is to continue to develop partnering relationships and seek opportunities to work together in other markets. It is these types of collaborative efforts that we believe will differentiate biofuels marketers in the future. We want to be on the forefront of this thinking and action.”
The new ethanol distribution facility is expected to be operational in about three months.
CHS, a company that has provided leadership in renewable energy for more than 30 years, recently purchased its partner’s interest in Provista, thus making CHS Provista’s sole member. CHS is the largest seller of E85 ethanol in the nation through a network of 1,600 Cenex®-branded retailers.
Provista (www.provistafuels.com) currently markets more than 550 million gallons of ethanol. Combined with CHS strengths in transportation, logistics, marketing and risk management, Provista offers a full range of solutions for the renewable fuels industry.
CHS Inc. (www.chsinc.com) is a diversified energy, grains and foods company committed to providing the essential resources that enrich lives around the world. A Fortune 200 company, CHS is owned by farmers, ranchers and cooperatives, along with thousands of preferred stockholders, from the Great Lakes to the Pacific Northwest and from the Canadian border to Texas. CHS supplies energy, crop nutrients, grain, livestock feed, food and food ingredients, along with business solutions including insurance, financial and risk management services. The company operates petroleum refineries/pipelines and manufactures, markets and distributes Cenex® brand refined fuels, lubricants, propane and renewable energy products. CHS is listed on the NASDAQ at CHSCP.
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This document contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 that are based on management's current expectations and assumptions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. The company undertakes no obligations to publicly revise any forward-looking statements to reflect future events or circumstances. For a discussion of additional factors that may materially affect management's estimates and predictions, please view the CHS Inc. annual report filed on Form 10-K for the year ended Aug. 31, 2007, which can be found on the Securities and Exchange Commission web site (www.sec.gov) or on the CHS web site www.chsinc.com.
SOURCE: CHS Inc.
CONTACT: Lani Jordan of CHS Inc., +1-651-355-4946,
lani.jordan@chsinc.com ; or Kristi Lee of US BioEnergy Corporation,
+1-605-696-3150, Kristi.Lee@usbioenergy.net
Web site: http://www.chsinc.com