Indiana ethanol facility sells to Babcock & Brown

Source: Energy Digital

Date :6/22/2007 8:47:37 AM

New Energy Capital Corp. announces the sale of the Iroquois Bio-Energy Company, LLC, to Babcock & Brown.

The Iroquois Bio-Energy Company, LLC (IBEC) facility, a 45 million gallon per year ethanol plant located in Rensselaer, Indiana, began operation in January 2007. The plant currently processes approximately 16 million bushels of corn to produce 45 million gallons of ethanol per year. New Energy Capital, which owned 57% of the facility, began working with the local IBEC development team in 2004. The facility was built by Fagen, Inc. the leading ethanol engineering and construction company, utilizing process technology from ICM, Inc., the world leader in ethanol process design.

Scott Brown, CEO and co-founder of New Energy Capital says, "We are delighted with our investment in IBEC which has produced a highly attractive return for our investors and co-investors, many of whom are local farmers and members of the Rensselaer community. The investment is also providing substantial economic benefits for the local economy and has added an important facility to the country's clean energy infrastructure. The operating team is superb, and we wish them well as part of the Babcock & Brown enterprise."

Everett Smith, CFO of New Energy Capital notes, "With our dedicated focus on clean infrastructure, and deep understanding of this sector, NEC is one of the first private equity investors to successfully transition a significant ethanol project from greenfield development into operation. We look forward to building on this experience as we continue to invest in companies and projects which address the world's resource limits."

The acquisition marks continued growth for Babcock & Brown in the ethanol industry, which now has two facilities in operation and two in construction.