Green Plains and Tharaldson Ethanol Announce Successful Start-Up of MSC™ System
Green Plains (NASDAQ: GPRE) and Tharaldson Ethanol have successfully launched the world's largest MSC™ system at Tharaldson's 175 million-gallon biorefinery in Casselton, North Dakota.
The MSC™ technology, provided by Fluid Quip Technologies, enhances the production of Ultra-High Protein feed ingredients, offering superior nutrition for animals and up to 40% lower carbon intensity compared to other products.
This development also boosts renewable corn oil yields, contributing to advanced biofuels like renewable diesel and sustainable aviation fuel. The achievement increases Green Plains' annual Ultra-High Protein production capacity to 430,000 tons.
- Successful start-up of the world's largest MSC™ system at Tharaldson's biorefinery.
- Enhanced production of Ultra-High Protein with up to 40% lower carbon intensity.
- Increased renewable corn oil yields.
- Annual Ultra-High Protein production capacity increased to 430,000 tons.
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The successful start-up of the MSC™ system at Tharaldson's biorefinery is a positive strategic move for Green Plains Inc. The increased production of Ultra-High Protein and higher renewable corn oil yields will likely lead to additional revenue streams. Notably, the production of Ultra-High Protein, a premium product, suggests higher margins due to its superior nutritional qualities and lower carbon intensity, which aligns with the growing demand for sustainable products.
From a financial perspective, the expansion of production capacity to 430,000 tons per year is substantial. This can result in increased market share in the animal feed industry, particularly in the pet and aquaculture sectors. Additionally, the record renewable corn oil yields offer another revenue channel, potentially improving the company's profitability.
Key metrics such as EBITDA margins, cost of goods sold (COGS) and overall profitability should be monitored closely to assess the full financial impact of this new system. Investors should also keep an eye on potential operational efficiencies and whether they translate into improved financial performance in the subsequent quarters.
The launch of the world’s largest MSC™ system at Tharaldson’s biorefinery marks a significant milestone in the protein feed market. The increase in production capacity for Ultra-High Protein positions Green Plains as a competitive player in the sustainable animal feed market. This is particularly relevant given the rising consumer demand for environmentally friendly and high-quality feed products.
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Investors should watch for market penetration rates of the Ultra-High Protein product and how it competes with existing offerings. Analyzing market reception and potential contracts with major feed suppliers could provide insights into long-term viability and profitability.
"The successful start-up of the MSC system at our turnkey partner Tharaldson Ethanol marks a significant milestone in the production of Ultra-High Protein," said Todd Becker, President and CEO of Green Plains. "Achieving higher renewable corn oil yields and expanding protein production not only strengthens our product portfolio but also reinforces our position as a leading producer of innovative low-CI high-protein feed ingredients."
In addition to producing higher protein ingredients, the MSC™ system has allowed Tharaldson to achieve record renewable corn oil yields. Green Plains is dedicated to maximizing the value of every kernel of corn, contributing more low-carbon intensity feedstocks for advanced biofuels including renewable diesel, biodiesel and sustainable aviation fuel.
"This achievement is a testament to the hard work and collaboration between Green Plains and Tharaldson,” said Ryan Carter, COO of Tharaldson Ethanol. “We are excited to be producing Ultra-High Protein, and are already seeing increased corn oil production, a testament to the robust technology portfolio at Fluid Quip Technologies.”
Fluid Quip Technologies provided the MSC™ technology as well as the engineering, design, procurement, construction management and startup services for the project. The completion of the MSC™ system at Tharaldson brings overall annual production capacity for Ultra-High Protein marketed by Green Plains to 430,000 tons.
About Green Plains Inc.
Green Plains Inc. (NASDAQ:GPRE) is a leading biorefining company focused on the development and utilization of fermentation, agricultural and biological technologies in the processing of annually renewable crops into sustainable value-added ingredients. This includes the production of cleaner low carbon biofuels and renewable feedstocks for advanced biofuels. Green Plains is an innovative producer of Sequence™ and novel ingredients for animal and aquaculture diets to help satisfy a growing global appetite for sustainable protein. For more information, visit www.gpreinc.com.
About Tharaldson Ethanol
Tharaldson Ethanol is located just west of
About Fluid Quip Technologies
Fluid Quip Technologies® (FQT) is a premier technology and process engineering firm based in
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Green Plains Inc. Contacts
Investors: Phil Boggs | Executive Vice President, Investor Relations & Finance | 402.884.8700 | phil.boggs@gpreinc.com
Media: Devin Mogler | Senior Vice President, Corporate & Investor Relations | 202.389.2670 | devin.mogler@gpreinc.com
Source: Green Plains Inc.
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