Ergon BioFuels LLC, a subsidiary of Ergon Inc., recently announced that it has entered into a comprehensive services arrangement with Gavilon to originate and market grain at the company’s Vicksburg, Mississippi, 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.

“We are thrilled to work with Gavilon as we bring our ethanol facility back online,” said Craig Busbea, general manager at Ergon BioFuels. “The economic gains of this agreement will be a boon to our companies, the city of Vicksburg and the state of Mississippi.”

“We look forward to working hard to earn the trust of area producers to meet the new demand of the ethanol plant and markets accessible through the Gavilon network,” said Chris Faust, regional vice president of North American Grain at Gavilon. “The proximity of the Vicksburg facility to our Rosedale operation will also create additional opportunities for producers as we are able to source and price grain more competitively than ever before.”