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POET in Talks to Acquire Flint Hills' Ethanol Assets
USAgNet - 05/14/2021

POET, the largest biofuels producer in the United States, is in discussions with Flint Hills Resources to acquire the entirety of Flint Hills' ethanol assets, both companies told Reuters on Thursday.

The deal would increase POET's potential production capacity for ethanol by more than a third to 3 billion gallons per year, said Jessica Sexe, a spokeswoman for POET.

That could help the company tap into potential growth in the biofuels market as the Biden administration considers boosting biofuels as part of a broader strategy to decarbonize the nation's economy to fight climate change.

Both Sexe and Jake Reint, spokesman for Flint Hills, declined to put a price on the deal.

Flint Hills, a refining, biofuels and petrochemical company, is based in Wichita, Kansas, and is currently the fifth-largest ethanol producer in the United States. Its biofuels division includes six ethanol plants with a combined capacity of about 800 million gallons per year, 1.5 million tons of distillers grains and about 200 million pounds of corn oil, Reint said.

Both companies are privately held. The discussions come after a hard year for the ethanol industry because of the coronavirus pandemic, which sank demand for fuel. Ethanol's top market is for use in blending with gasoline, something required under U.S. law.


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