KAAPA idles Ravenna facility, continues operations in Minden
PHOTO: KAAPA Ethanol
April 2, 2020
BY Erin Voegele
KAAPA Ethanol Commodities LLC sent a letter to stakeholders on March 31 announcing the company is idling its ethanol plant in Ravenna, Nebraska, due to impacts from the COVID-19 pandemic. KAAPA plans to continue operations at its Minden, Nebraska, facility. KAAPA plans to keep all employees on staff at all company locations and intends to resume production at the Ravenna plant as soon as market conditions allow.
“As you have all seen in the headlines, COVID-19 has changed the world in which we live in ways none of us could have imagined just a few short weeks ago,” wrote Chuck Woodside, CEO of KAPPA, in the letter.
“The global pandemic has had impacts on each of us as individuals, as well as our businesses,” he continued. “KAAPA Ethanol Commodities is no exemption.” The letter cites estimates showing the demand for transportation fuels, such as gasoline and ethanol, could fall by 70 percent. “The reality is consumers are not filling up their gas tanks,” he said. “This quickly backs up the supply chain for ethanol and we are seeing a dramatic decrease in ethanol demand.”
Advertisement
That loss of demand and the corresponding limits on ethanol storage capacity will force the 125 MMgy Ravenna plant to idle for the near term. “We will continue to operate our Minden facility as long as margins and logistics allow,” Woodside wrote. “Our elevator in Elm Creek will continue to operate as well.”
“I am pleased to say that KAAPA Ethanol Holdings continues to be in a strong financial condition,” he continued. “We have good liquidity and are well positioned to address thin margins. The difficulty in this is that no one has any idea how long the current situation will last.”
Advertisement
Woodside said the company will continue to post bids at all locations as the company looks to maintain its relationship with agriculture producers. He also stressed that the company will honor its contracts and will work with each producer individually to determine the best path forward on the delivery of their scheduled corn contracts.
“We don’t believe you can over communicate in these environments so please don’t hesitate to reach out to us with any questions,” Woodside wrote. “We do not know the duration of this shutdown and will make that determination based on the market conditions.”
A full copy of the letter can be downloaded from the KAAPA website.
Related Stories
Moeve has reached a strategic agreement with Grupo Armas Trasmediterránea to supply 2G marine biofuels in the Canary Islands, with approximately 40,000 tons to be delivered through December 2025 under a long-term contract.
Castle & Cooke Aviation, a premier provider of luxury FBO services, now offers sustainable aviation fuel (SAF) from Avfuel Corp. at Van Nuys Airport (VNY) in Southern California. The SAF produced by Neste.
General Index and ATOBA Energy are partnering to bring a brand-new vision of how SAF benchmarks are built. SAF indexes need to be tailored to the unique cost profiles of diverse production technologies, the companies said.
The Singapore Airlines Group has signed agreements with Neste and World Energy to acquire sustainable aviation fuel (SAF) and SAF certificates, respectively. The purchases include 1,000 metric tons of neat SAF from Neste.
Biomass Magazine has announced the dates for the 19th annual International Biomass Conference & Expo. The event is scheduled to be held March 31-April 2, 2026, in Nashville, Tennessee, at the Gaylord Opryland Resort & Convention Center.
Upcoming Events
