In Virginia, Osage Bio Energy announced that its board of directors has decided to market the company for sale. The company has also decided not to start production at its Appomattox Bio Energy ethanol plant in Hopewell, Virginia in conjunction with the sales process.
As a result of this action, the company will implement a reduction in force effective May 25, 2011. A core team of employees will continue to work at the plant to help facilitate the sale and maintain the condition of the assets for prospective buyers.
“Osage Bio Energy would like to recognize and acknowledge the efforts of the many employees, community leaders and supporters that came together to develop this project over the past few years,” said Heather Scott, company spokesperson. “Appomattox Bio Energy is a first of its kind facility in the United States and represents a unique opportunity for multi-feedstock ethanol production to its future owner.”
Osage Bio Energy was founded in 2007 with the goal of developing and building the first commercial scale ethanol plant in the U.S. capable of processing multiple feedstocks, focusing on winter barley. The site for the plant was selected in Hopewell, Va., and construction began in late 2008. The facility is fully functional and production-ready.
Last November, we reported that the barley ethanol plant was wrapping up construction, and was scheduled to go online in the first quarter of 2011. The company had signed a CO2-purchase agreement with Praxair Incorporated, to build a CO2 plant at the site.
Category: Producer News