In Mississippi, Ergon BioFuels announced that it has entered into a comprehensive services arrangement with Gavilon to originate and market grain at the company’s Vicksburg, Miss. facility. Under the terms of the agreement, Gavilon will operate the 3.2-million-bushel warehouse at the Ergon BioFuels facility and begin buying corn, soybeans, milo and soft red wheat from area producers in the near future.
The strategic arrangement between Ergon and Gavilon will also support the reopening of the ethanol plant located on site. Ergon BioFuels will own and operate the ethanol plant and market the ethanol and corn oil. Gavilon will supply feedstocks to the 65-million-gallon-per-year-capacity facility and market certain offtake, including dried distiller’s grain with solubles, wet distiller’s grains with solubles and corn distiller’s condensed solubles for Ergon BioFuels. The plant is scheduled to reopen in May 2015.