Green Plains Inc. (Green Plains) operates as a biorefining company.
The company is maximizing the potential of existing resources through fermentation and patented agribusiness technologies. The company continues the transition from a commodity-processing business to a value-added agricultural technology company creating lower carbon, high-value ingredients from existing resources. To that end, the company is executing on a number of initiatives to develop and implement proven agricultural, foo...
Green Plains Inc. (Green Plains) operates as a biorefining company.
The company is maximizing the potential of existing resources through fermentation and patented agribusiness technologies. The company continues the transition from a commodity-processing business to a value-added agricultural technology company creating lower carbon, high-value ingredients from existing resources. To that end, the company is executing on a number of initiatives to develop and implement proven agricultural, food and industrial biotechnology systems that allow for product diversification, new market opportunities and production of additional value-added low-carbon ingredients, such as Ultra-High Protein, low-CI dextrose, renewable corn oil and more, as well as offering these technologies to the broader biofuels industry. The company is a leader in deploying carbon capture technology to reduce the CI of the company’s biofuels at several of its production facilities.
Business Strategy
As part of the company’s carbon reduction strategy, the company committed its seven biorefineries in Nebraska, Iowa and Minnesota to carbon capture and sequestration projects through carbon pipeline transport, the company’s four Iowa and Minnesota facilities with Summit Carbon Solutions and the company’s three Nebraska biorefineries with Trailblazer CO2 Pipeline LLC, which will lower GHG emissions through the capture of biogenic carbon dioxide at each of these biorefineries, significantly lowering their CI, in some cases by more than half. The company has executed agreements for the future purchase, financing and installation of carbon capture equipment at the company’s three Nebraska plants. The company anticipates the completion of these Nebraska biorefinery carbon capture projects in the second half of 2025, and Summit Carbon Solutions intends to be operational in 2027. In addition, the company is exploring alternative options for biogenic carbon dioxide utilization where pipeline transport or direct injection may not be feasible.
In January 2023, Green Plains, United Airlines and Tallgrass formed a joint venture, Blue Blade Energy, to explore development and commercialization of ATJ SAF.
As part of the company’s transformation to a value-added agricultural technology company, the company began producing Ultra-High Protein using FQT's MSC technology in 2020 and have deployed this technology across half of the company’s biorefinery locations, in addition to one joint venture, to help meet growing demand for protein feed ingredients and low-carbon renewable corn oil to use as a feedstock for producing advanced biofuels such as renewable diesel, biodiesel and SAF, as the MSC technology enhances renewable corn oil yields.
The company repeatedly demonstrated full scale 60% protein production runs using FQT's MSC system, which the company has branded as Sequence. The company markets this specialty feed ingredient to aquaculture customers globally. The company’s 50/50 joint venture with Tharaldson Ethanol Plant I LLC (Tharaldson Ethanol) owns the MSC technology assets added adjacent to the Tharaldson Ethanol plant in Casselton, North Dakota, which produces Ultra-High Protein and increases renewable corn oil yields. The company shares in the protein and renewable corn oil uplift, with no additional exposure to the Tharaldson Ethanol production. These assets completed commissioning and shipped the first commercial quantities during the second quarter of 2024. Including GP Turnkey Tharaldson's capacity, the annual Ultra-High Protein capacity the company market is approximately 430 thousand tons.
In September 2022, the company broke ground at its biorefinery in Shenandoah, Iowa, as the first location to deploy FQT's CST at commercial scale, and during 2024, the company achieved successful ongoing production of dextrose syrups with CST. FQT’s CST allows for the production of both food and industrial grade low-carbon glucose and dextrose at a dry mill ethanol plant to target applications in food production, in addition to serving as a feedstock for renewable chemicals and synthetic biology. The facility is capable of producing 60 million pounds of product per year, and the company anticipates modifying additional biorefineries to include FQT CST production capabilities to meet anticipated demand.
The company also pursues innovation and new business opportunities through a variety of ventures. In July 2023, the company announced a technology collaboration with Equilon Enterprises LLC, which allows the company to use FQT’s precision separation and processing technology with Shell Fiber Conversion Technology. The two technologies combine fermentation, mechanical separation and processing, and fiber conversion into one platform. This has the potential to liberate all of the remaining distillers corn oil bound in the fiber fraction of the corn kernel, generate cellulosic sugars for production of low-carbon ethanol, and enhance and expand available high protein to produce high-quality ingredients for global pet, livestock and aquaculture diets. The company’s collaboration completed the construction of a large demonstration facility at Green Plains York and began commissioning during 2024.
Operating Segments
The company groups its business activities into the following two operating segments to manage performance:
Ethanol Production segment
The company’s Ethanol Production segment includes the production, storage and transportation of ethanol, distillers grains, Ultra-High Protein and renewable corn oil at ten biorefineries in Illinois, Indiana, Iowa, Minnesota, Nebraska and Tennessee. At capacity, the company’s facilities are capable of processing approximately 310 million bushels of corn per year and producing approximately 903 million gallons of ethanol, 2.2 million tons of distillers grains and Ultra-High Protein, and 310 million pounds of renewable corn oil, a low-carbon feedstock for biodiesel, renewable diesel and sustainable aviation fuel. The company is one of the largest ethanol producers in North America.
Ethanol Plants
The company operates ten ethanol plants, located in six states, that produce ethanol, distillers grains, Ultra-High Protein and renewable corn oil.
The company’s business is directly affected by the supply and demand for ethanol and other fuels in the markets served by the company’s assets.
Corn Feedstock and Ethanol Production
The company’s plants use corn as feedstock in a dry mill ethanol production process. Each of the company’s plants requires on average approximately 31 million bushels of corn annually, depending on its production capacity.
The company’s corn supply is obtained primarily from local markets. The company uses cash and forward purchase contracts with grain producers and elevators to buy corn. The company maintains direct relationships with local farmers, grain elevators and cooperatives, which serve as the company’s primary sources of grain feedstock for all ten of the company’s ethanol plants. This allows the company to purchase much of the corn the company need directly from farmers throughout the year. Each of the company’s plants is also situated on rail lines or has other logistical solutions to access corn supplies from other regions of the country should local supplies become insufficient.
Distillers Grains
The company can produce three forms of distillers grains, depending on the number of times the solids are passed through the dryer system:
Wet distillers grains, which contain approximately 65% to 70% moisture, have a shelf life of approximately three days and is therefore sold to dairies or feedlots within the immediate vicinity of the company’s plants;
Modified wet distillers grains, which is dried further to approximately 50% to 55% moisture, have a shelf life of approximately three weeks and are marketed to regional dairies and feedlots; and
Dried distillers grains, which have been dried more extensively to approximately 10% to 12% moisture, have an almost indefinite shelf life and may be stored, sold and shipped to any market.
Ultra-High Protein
Ultra-High Protein is corn fermented protein produced by further processing of the spent grain mash from the beer column. The spent grain is processed using FQT’s MSC technology, which contains a series of screening equipment to remove fiber from the spent grain which is sent to the distillers grain dryer. The remaining product is washed and clarified into a wet protein stream which is dried in a ring dryer to produce Ultra-High Protein meal with protein concentrations of approximately 50%. The company’s new specialty feed ingredient, Sequence has protein concentrations of approximately 60%.
Renewable Corn Oil
Renewable corn oil systems extract non-edible renewable corn oil from the thin stillage evaporation process immediately before the production of distillers grains. Renewable corn oil is produced by processing the syrup through a decanter-style, or disk-stack, centrifuge. The centrifuges separate the relatively light renewable corn oil from the heavier components of the syrup. Across the company’s entire platform, the company extracts on average approximately 1.0 pound of renewable corn oil per bushel of corn used to produce ethanol. Industrial uses for renewable corn oil are primarily as a feedstock for renewable diesel and biodiesel. Additionally, it is also used as a livestock feed additive.
Natural Gas
Depending on production parameters, the company’s ethanol plants use on average approximately 28,000 BTUs of natural gas per gallon of production. The company has service agreements to acquire the natural gas the company needs and transports the gas through pipelines to its plants.
Electricity
The company’s plants require on average approximately 0.9 kilowatt hours of electricity per gallon of production. Local utilities supply the necessary electricity to all of the company’s ethanol plants.
Water
While some of the company’s plants satisfy a majority of their water requirements from wells located on their respective properties, each plant also obtains drinkable water from local municipal water sources. Each facility either uses city water or operates a filtration system to purify the well water that is used for its operations. Local municipalities supply all of the necessary water for the company’s plants that do not have onsite wells. Most of the water used in an ethanol plant is recycled in the production process.
Transportation, Delivery and Terminal Services
Most of the company’s ethanol plants are situated near major highways or rail lines to ensure efficient product movement. Deliveries within 150 miles of the company’s plants and the fuel terminal facility are generally transported by truck. Deliveries to distant markets are shipped using major U.S. rail carriers that can switch cars to other major railroads, allowing the company’s plants to ship product throughout the United States and to international export terminals. As of December 31, 2024, the leased railcar fleet consisted of approximately 2,080 ethanol railcars with an aggregate capacity of 61.8 mmg, and 1,000 hopper and tank cars to transport other co-products and raw materials. The company expects the railcar volumetric capacity to fluctuate over the normal course of business as the existing railcar leases expire and the company enters into or acquire new railcar leases. The company owns and operates one fuel terminal with a storage capacity of approximately 180 thousand gallons and throughput capacity of approximately 40 mmgy.
Agribusiness and Energy Services segment
The company’s Agribusiness and Energy Services segment includes grain procurement, with approximately 20.2 million bushels of grain storage capacity, and the company’s commodity marketing business, which markets, sells and distributes the ethanol, distillers grains and renewable corn oil produced at the company’s ethanol plants. The company also markets ethanol for a third-party producer, as well as buy and sell ethanol, distillers grains, renewable corn oil, grain, natural gas and other commodities in various markets.
The company buys bulk grain, primarily corn, from area producers; and provides grain drying and storage services to those producers. The grain is used as feedstock for the company’s ethanol plants. Bulk grain commodities are traded on commodity exchanges and inventory values are affected by changes in these markets. To mitigate risks related to market fluctuations from purchase and sale commitments of grain, as well as grain held in inventory, the company enters into exchange-traded futures and options contracts that function as economic and designated accounting hedges at times.
Seasonality is present within the company’s agribusiness operations. The fall harvest period typically results in higher handling margins and stronger financial results during the fourth quarter of each year (year ended December 2024).
Through Green Plains Trade, the company provides marketing services for its ten ethanol plants for all of the co-products produced at these locations, as well as market ethanol for a third party and also provide marketing services to the company’s ethanol plants for natural gas procurement.
The company markets the ethanol the company and a third party produce to local, regional, national and international customers. The company also purchases ethanol from independent producers for pricing arbitrage. The company sells to various markets under sales agreements with integrated energy companies; retailers, traders and resellers in the United States and buyers for export to Brazil, Canada, the Philippines, India, Europe and other international markets.
The company markets distillers grains to local, domestic and international markets through Green Plains Trade. The bulk of the company’s demand is delivered to geographic regions that do not have significant local corn, distillers grains or high protein ingredients production. The company sells to international markets indirectly through exporters. Access to diversified markets allows the company to sell product to customers offering the highest net price.
The company’s renewable corn oil is sold primarily to renewable diesel and biodiesel plants and, to a lesser extent, feedlot and poultry markets. The company transports its renewable corn oil by truck to locations in a close proximity to the company’s ethanol plants primarily in the southeastern and midwestern regions of the United States. The company also transports renewable corn oil by rail and barges to national markets, as well as to exporters for shipment on vessels to international markets.
The company provides marketing services of natural gas to its ethanol plants including the procurement of both the pipeline capacity and natural gas. The company also enhances the value by aggregating volumes at various storage facilities which can be sold to either the plants or various intermediary markets and end markets.
History
The company, an Iowa corporation, was founded in 2004. It was incorporated in 2004. The company was formerly known as Green Plains Renewable Energy, Inc. and changed its name to Green Plains Inc. in 2014.