PEKIN, Ill., Feb. 16, 2007 (PRIME NEWSWIRE) -- Aventine Renewable Energy Holdings, Inc. (NYSE:AVR), a leading producer, marketer and end-to-end supplier of ethanol, today announced that Ethanol Grain Processors, LLC's ("EGP") Obion, Tennessee facility will join its marketing alliance network. Aventine will market all of the ethanol for the EGP facility when production begins. Completion of the facility is expected in late summer/early fall of 2008.
EGP's new Obion plant will produce 100 million nameplate gallons of ethanol annually, and is being built on a 230 acre site near Obion, Tennessee. EGP's largest investor, VBV, LLC, is an entity majority-owned jointly by an affiliate of Sir Richard Branson's Virgin Group and by Bioverda International Holdings Limited.
Ron Miller, Aventine's President and Chief Executive Officer said, "The addition of this new marketing alliance partner is important in our overall growth plan. Ethanol Grain Processor's new facility will be an important partner in supplying the southeastern part of the U.S. with ethanol."
About Aventine
Aventine is a leading producer, marketer and end-to-end distributor of ethanol in the United States. Aventine produces, markets and distributes ethanol to leading energy companies. In addition to ethanol, it is also a producer of distillers grains, corn gluten feed, corn germ and brewers' yeast.
About VBV LLC
VBV LLC is an entity majority-owned jointly by an affiliate of Sir Richard Branson's Virgin Group and by Bioverda International Holdings Limited, a subsidiary of NTR plc of Dublin, Ireland. VBV is intended to be the vehicle through which Virgin and Bioverda make a number of investments in the biofuels sector. VBV also has made a majority investment in Indiana BioEnergy, LLC of Bluffton, Indiana. These investments by the Virgin Group support Sir Richard Branson's pledge at the Clinton Global Initiative to invest heavily in renewable energy initiatives.
Internet address is www.aventinerei.com.
Forward Looking Statements
Certain information included in this press release may be deemed to be "forward looking statements" within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release, are forward looking statements. Any forward looking statements are not guarantees of Aventine's future performance and are subject to risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by such forward looking statements. Aventine disclaims any duty to update any forward looking statements. Some of the factors that may cause Aventine's actual results, developments and business decisions to differ materially from those contemplated by such forward looking statements include the following:
* Changes in or elimination of laws, tariffs, trade or other controls
or enforcement practices such as:
- National, state or local energy policy;
- Federal ethanol tax incentives;
- Regulation currently proposed and/or under consideration which
may increase the existing renewable fuel standard and other
legislation mandating the usage of ethanol;
- State and federal regulation restricting or banning the use of
Methyl Tertiary Butyl Ether;
- Environmental laws and regulations applicable to Aventine's
operations and the enforcement thereof;
* Changes in weather and general economic conditions;
* Overcapacity within the ethanol and petroleum refining industries;
* Total United States consumption of gasoline;
* Availability and costs of products and raw materials, particularly
corn, coal and natural gas;
* Labor relations;
* Fluctuations in petroleum prices;
* The impact on margins from a change in the relationship between
prices received from the sale of co-products and the price paid for
corn;
* Aventine's or its employees' failure to comply with applicable laws
and regulations;
* Aventine's ability to generate free cash flow to invest in its
business and service any indebtedness;
* Limitations and restrictions contained in the instruments and
agreements governing Aventine's indebtedness;
* Aventine's ability to raise additional capital and secure additional
financing, and our ability to service such debt, if obtained;
* Aventine's ability to retain key employees;
* Liability resulting from actual or potential future litigation;
* Competition;
* Plant shutdowns or disruptions at our plant or plants whose products
we market;
* Availability of rail cars and barges;
* Renewal of alliance partner contracts;
* Our ability to receive and/or renew permits to construct and/or
commence operations of our proposed capacity additions in a timely
manner, or at all; and
* Fluctuations in earnings resulting from increases or decreases in
the value of ethanol inventory.