The already huge CHS, Inc. got bigger this week as it acquired 28 percent ownership in U.S. BioEnergy Corporation, an ethanol production and marketing firm.
CHS, a diversified energy, grains, and foods company, reported over $221 million in earnings last year and now plans to dive right in to the ethanol production arena, according to John Johnson, CHS president and chief executive officer. “By working with an established company, CHS becomes actively involved in the renewable fuels manufacturing arena more quickly and on a broader basis than it could have on its own.” CHS has sold ethanol-blended fuels for more than 25 years and currently is one of the nation’s largest suppliers of blended fuel products at 500 million gallons annually, distributed through 64 terminals. CHS is the conglomerate formed when Cenex and Harvest States Cooperatives merged in 1998. US BioEnergy is a Brookings, S.D. based company that currently has two ethanol plants under construction, US Bio Albert City, a 100-million gallons/year plant in Iowa and US Bio Superior Corn, a 45-mgy plant near Lake Odessa, Mich. In addition, US Bio Janesville, a 100 mgy plant in Minnesota, is under development and other projects are being considered. In addition, US BioEnergy’s subsidiary UBE, provides ethanol and dried distiller grains marketing and/or management services for 11 operating plants and six currently under construction.