November 12 (Renewables Now) - The US unit of German biofuels producer Verbio Vereinigte BioEnergie AG has agreed to acquire the cellulosic ethanol plant in Iowa of DuPont Industrial Biosciences, the parties announced last week.
Under the deal, Verbio North America Corporation (VNA) will purchase the particular plant and some of its corn stover inventory that are currently owned by the division of DowDuPont Inc (NYSE:DWDP) and start producing renewable natural gas (RNG) there. According to a joint statement on Thursday, the new owner will use the existing infrastructure at the Nevada-based plant and install new facilities using cellulosic technology that will allow it to make RNG from corn stover and other cellulosic crop residues.
The acquisition is expected to be completed this month after customary closing conditions have been met. VNA intends to start building the RNG plant next spring, targeting commercial production of the fuel by the summer of 2020.
The German firm already has two bioethanol plants at home, the second one of which is currently undergoing the commissioning process. The company produces 140 million gallons of biodiesel, 87 million gallons of ethanol and 27 million gallons of RNG annually.