Advanced BioEnergy LLC announced April 9 it will build an initial 800,000 bushels of year-round corn storage and related grain receiving capabilities at its Aberdeen, South Dakota, ethanol plant. The plans include the ability to expand the total year-round corn storage by an additional 1 million bushels in the future. The grain receiving facility will include a 20,000 bushel-per-hour corn receiving pit and will utilize RFID card recognition technology. The company also operates an ethanol plant in Huron, South Dakota, and is currently reviewing various options to enhance the grain receiving and storage capabilities at that plant. ABE employs approximately 54 people at its Aberdeen and Huron, South Dakota, ethanol plants. In conjunction with this project the company will hire an additional three employees, offering competitive wages and benefits.

According to Advanced BioEnergy’s CEO, Rich Peterson, “We are excited to offer another direct selling option to local farmers, including high-speed dumping capability to allow for quick in-and-out times. We expect to break ground in June of this year and complete construction by July 2019.”

The Aberdeen and Huron plants collectively grind approximately 28 million bushels of corn per year. Historically, the company has sourced 100 percent of its annual corn needs from a single commercial partner under a third-party supply agreement. The current supply agreement expires in November 2019. In addition to the construction project, the company will be focusing on the development of a farmer-direct purchase program. The company will supplement its farmer-direct program with commercial relationships to round out its corn supply needs. The company will finance the project using a combination of existing cash resources and debt financing.

“The opportunity to improve our bottom line is the primary driver of the project. We have made several new investments in each of our plants over the past several years, and view this project as a continuation of our goal to invest capital where we believe it enhances unit holder value long-term,” added Peterson.