Press release posted Dec. 15, 2009, at 4:02 p.m. CST

Renew Energy LLC has been sold at auction to Valero, a San Antonio-based energy company that has recently begun the acquisition of an ethanol portfolio.

Renew entered Chapter 11 bankruptcy earlier this year which concluded Friday evening with an auction process. Valero was declared the winner, offering $72 million for the 110 MMgy plant.

"The selling price is testament to the outstanding team we have established here at Renew," said Renew CEO Jeff White. "Together with our cutting edge technology, this plant is one of the most efficient in the nation. Today's valuation by Valero confirms our achievements over the last year."

The closing for the sale is expected to take place in early 2010, and it is anticipated that most, if not all, of the current workforce will be maintained. Operations will continue at the current rate throughout the sale process and are expected to increase over time.

"Our founding owners deserve a lot of credit for building their dream of the most competitive ethanol plant in the world," said White. "Unfortunately, they hit the perfect storm of a crashing credit market, soft ethanol pricing, and a construction overhang resulting from the use of that very technology. They simply didn't have the capital to weather the storm."

White adds that the plant is currently operating in the black and has plans for improvements to its process to discuss with the new ownership team.

"Valero will soon find out that they have purchased a gem," said White.

SOURCE: RENEW ENERGY LLC