Southwest Iowa Renewable Energy, LLC products and sells ethanol, distillers grains and corn oil in the United States, Mexico, and the Pacific Rim.
Principal Products
The principal products the company produces are ethanol, distillers grains, distillers corn oil, and carbon dioxide (CO2).
Ethanol
The company’s primary product is ethanol. Ethanol is ethyl alcohol, a fuel component made primarily from corn and various other grains, which can be used as an octane enhancer in fuels; an oxygenated...
Southwest Iowa Renewable Energy, LLC products and sells ethanol, distillers grains and corn oil in the United States, Mexico, and the Pacific Rim.
Principal Products
The principal products the company produces are ethanol, distillers grains, distillers corn oil, and carbon dioxide (CO2).
Ethanol
The company’s primary product is ethanol. Ethanol is ethyl alcohol, a fuel component made primarily from corn and various other grains, which can be used as an octane enhancer in fuels; an oxygenated fuel additive for the purpose of reducing ozone and carbon monoxide vehicle emissions; and a non-petroleum-based gasoline substitute. More than 99% of all ethanol produced in the United States is used in its primary form for blending with unleaded gasoline and other fuel products. The principal purchasers of ethanol are generally wholesale gasoline marketers or blenders. Ethanol is shipped by truck in the local markets, and by rail in the regional, national and international markets. The company produced 121.9 million gallons of ethanol for the year ended year ended September 30, 2022 (Fiscal 2022).
Distillers Grain
The company produces two forms of distillers grains: wet distillers grains with solubles (WDGS) and dried distillers grains with solubles (DDGS). WDGS are processed corn mash that has been dried to approximately 50% to 65% moisture. WDGS have a shelf life of approximately seven days and are sold to local markets. DDGS are processed corn mash that has been dried to approximately 10% to 12% moisture. It has a longer shelf life and may be sold and shipped to any market.
For the year ended September 30, 2022, the company sold 2% less tons of distillers grains. Approximately 16.3% of the company’s revenue was derived from the sale of distillers grains in Fiscal 2022.
Corn Oil
The company’s system separates corn oil from the post-fermentation syrup stream as it leaves the evaporators of the ethanol plant. The company sold 10.7% greater tons of corn oil in Fiscal 2022.
Principal Product Markets
The company’s ethanol, distillers grains and distillers corn oil are primarily sold in the domestic market; however, as markets allow, its products can be, and has been, sold in the export markets. The company explores all markets for its distillers grains and corn oil products, and it expects Bunge to explore all markets for its ethanol, including export markets. The company markets and distributes all of the corn oil it produces directly to end users or middlemen within the domestic market.
Distribution Methods
The company is a party to an Amended and Restated Ethanol Purchase Agreement effective January 1, 2020, with Bunge North America, Inc. (Bunge) (the Ethanol Agreement). Under the Ethanol Agreement, the company sells Bunge denatured ethanol produced by it, and Bunge purchases the same. The company pays Bunge a flat monthly marketing fee for its services under the Ethanol Agreement. The term of the Ethanol Agreement expires on December 31, 2026.
Patents, Trademarks, Licenses, Franchises and Concessions
SIRE and the company’s SIRE logo are registered trademarks of it in the United States.
Seasonality
The company experiences some seasonality of demand for its ethanol. Since ethanol is predominantly blended with conventional gasoline for use in automobiles, ethanol demand tends to shift in relation to gasoline demand. As a result, the company experiences some seasonality of demand for ethanol in the summer months related to increased driving. In addition, it experiences some increased ethanol demand during holiday seasons related to increased gasoline demand.
History
Southwest Iowa Renewable Energy, LLC, an Iowa limited liability company, was founded in 2005. The company was incorporated in 2005.