Reuters reports that Green Plains, Inc., has purchased its second ethanol plant in a week. The facility, in Hereford, TX, was previously owned by Murphy USA Inc. The plant has an annual production capacity of 100 million gallons of ethanol. The facility was expected to close this month, but will now remain open.
Turning a profit on an ethanol plant located so far from the corn belt of the Midwest can be difficult. Murphy USA had previously told Reuters that the plant was for sale due to the industry's "difficult environment." Recent plummeting oil prices have also put a squeeze on demand for ethanol, increasing the riskiness of the venture. But Green Plains said the plant’s location was actually a plus, due to its proximity to a large concentration of cattle feedyards.