PEKIN, Ill., June 1, 2007 (PRIME NEWSWIRE) -- Aventine Renewable Energy Holdings, Inc. (NYSE:AVR), a leading producer, marketer and end-to-end provider of clean renewable energy, today announced it has finalized the engineering, procurement and construction ("EPC") contracts for its planned capacity expansions at Mt. Vernon, Indiana and Aurora, Nebraska.
The Company's EPC contracts with Kiewit Energy Company ("Kiewit") provide for Kiewit to build an ethanol production facility at each site capable of initially producing 113 million gallons of denatured ethanol annually as the primary product. In addition, the EPC contracts also call for Kiewit to provide certain additional materials and services to prepare each site for a phase II expansion. A phase II expansion would double the capacity of each of the plants, and the Company is currently seeking permits for the full 226 million gallons of annual production capacity for each site upfront. Once a "Notice to Proceed" is given to Kiewit, the estimated substantial completion time is expected to be 18 months. Delta-T Corporation is the technology provider for the projects, and will be a sub-contractor to Kiewit.
Daniel Trunfio, Aventine's Chief Operating Officer, said, "We are glad to have signed EPC contracts which are another milestone in completing these projects. Having these contracts in place will allow us to move forward on these projects as soon as we receive the necessary permits." Trunfio continued, "With Kiewit and Delta-T, we have aligned ourselves with two of the best firms in our industry. We look forward to completing these projects as expeditiously as possible."
Brad Kaufman, President of Kiewit Energy Company, added, "We are proud that Aventine has chosen Kiewit as its contractor of choice. Aventine is the premier ethanol company in the U.S. These projects continue the working relationship our companies previously established. The new projects bring together three great companies in Kiewit, Aventine and Delta-T. We look forward to the successful completion of these projects."
Rob Swain, President of Delta-T Corporation, said "We are excited to be working on this major ethanol program with two of the most respected companies in the industry. Together, Delta-T and Kiewit have worked hard to provide a world-class EPC solution that encompasses future technology options as required by Aventine. We at Delta-T are proud that our technology solutions will help Aventine remain a leader in ethanol production."
About Aventine
Aventine is a leading producer, marketer and end-to-end distributor of ethanol to many leading energy companies in the United States. Aventine is also a marketer and distributor of biodiesel. In addition to ethanol, Aventine also produces distillers grains, corn gluten feed, corn germ and brewers' yeast. Our Internet address is www.aventinerei.com.
About Kiewit Energy Company
Kiewit Energy Company, a subsidiary of Kiewit Corporation, provides a wide range of construction services to the oil and gas market. Based in Houston, TX and Calgary, AB, Canada, Kiewit Energy conducts construction projects in the domestic United States and Canada. Our offices support a growing list of oil and gas related construction projects including: oil sands processing facilities, refinery expansions, gas plant expansions, co-generation facilities, ethanol production facilities, spool fabrication facilities, SAGD facilities, and LNG onshore and offshore facilities. The oil and gas markets are expanding rapidly in Canada and experiencing new challenges in the United States. Over the next decade, Kiewit Energy will continue to be a key constructor in these markets. Internet address is www.kiewit.com/energy.
About Delta-T Corporation
Headquartered in Williamsburg, VA, Delta-T is a design-build firm that provides alcohol plants, systems, and services to the fuel, beverage, industrial, and pharmaceutical markets. Delta-T is known for pioneering many of the recent innovations currently in use by the newest generation of biorefineries to produce fuel ethanol, including the commercialization of molecular sieve dehydration, zero discharge of process wastewater, and more efficient refining/purification systems to produce high quality alcohols. Delta-T has provided alcohol production, dehydration, and purification solutions to more than 110 clients on five continents. Delta-T Corporation is located at 323 Alexander Lee Parkway, Williamsburg, VA 23185, USA. Telephone (757) 220-2955. Internet address is www.deltatcorp.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 for future expansions, 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.