ICM announced April 25 that ELEMENT LLC was placed in receivership on April 18 as a result of market-based disruptions that have impacted profitability. An independent, court-appointed receiver has been assigned control of the ethanol plant and future operational decisions.

Located in Colwich, Kansas, ELEMENT is a joint venture between ICM Inc. and The Andersons Inc. ICM owns 49 percent of the facility, which has been shut down for extended maintenance while both companies work with the receiver to determine a path forward.

“Despite the successful implementation of some of ICM’s latest technologies over the last 3 years, ELEMENT and its team have struggled to overcome the latest economic headwinds within the region,” said ICM President Chris Mitchell.

Mitchell indicated that the timing of operating a new plant in the face of reduced LCFS values and some of the highest corn basis in the country have affected economic performance. The price of corn, which accounts for approximately 80 percent of the cost of operation, has risen due to severe drought conditions in the U.S. Western Corn Belt. Mitchell also cited changes in California’s Low Carbon Fuel Standard credit markets as a contributing factor. As a result, the cash flow required to service the debt was insufficient without further equity investment into ELEMENT.

ICM has expressed an interest in partnering with new potential investors to make additional technology improvements to the plant to further lower carbon emissions and capitalize on new incentives.

“We would hope to partner in some way with other investors that have an interest in helping ELEMENT achieve the next level of carbon reduction and operational efficiency,” Mitchell said. “We have laid the foundation for this plant to be a top tier plant among low-carbon biofuels producers for years to come.”

Since becoming operational in 2019, ELEMENT has been a showcase for efficient process technologies, including an enhanced distillation, evaporation and filtration system designed by ICM. Its combined heat and power (CHP) system, which includes a turbine and high-pressure boiler meets 92 percent of the facility’s electrical demand.

ELEMENT is also outfitted with ICM’s Advanced Processing Package, which has enabled the consistent and industry-leading production of over five pounds of high-protein feed per bushel of corn.

“Although market economics were not favorable at ELEMENT, the technologies driving ELEMENT exceeded our expectations,” Mitchell said.