Green Plains will inaugurate a clean sugar project in August
Green Plains Inc. operated its facilities at 97% capacity during the second quarter of 2022 and expects to open its first commercial-scale clean sugar facility this month, according to comments from the president and CEO. management, Todd Becker, during the company’s second quarter results. appeal, held on August 2.
“Years of planning our modernization and optimization plan allowed us to operate at 97% operating capacity in the quarter, the highest since the fourth quarter of 2013,” Becker said, noting that the company thinks he can increase this usage rate as he continues. to optimize his plants. The Green Plains facilities operated at approximately 80% capacity during the second quarter of 2021.
Consolidated ethanol grind margin was $65.3 million, or 28 cents per gallon, for the second quarter of 2022, compared to $70.2 million, or 37 cents per gallon, reported for the same period of Last year. Green Plains currently expects consolidated grind margin to be in the mid-teens per gallon during the third quarter, with stronger margins expected for the final quarter of the year. Continued high corn oil prices and the start-up of additional MSC systems should support these projected margin levels for the remainder of the year.
Green Plains sold 231.413 million gallons of ethanol during the third quarter, up 21.2% from the same period last year. Distillery grain sales reached 593,000 tonnes, up 20%. Corn oil sales were 72.232 million pounds, up 31.6%. Becker noted that the company hit 1.3 pounds per bushel of oil yield in June.
According to Becker, Green Plains is seeing strong interest in its 50% and 60% protein products from Latin America and Southeast Asia, as well as domestically and around the world. Production of these protein-rich products is expected to ramp up over the next year as Green Plains brings several MSC systems online.
Becker said the MSC system at the company’s ethanol plant in Central City, Nebraska, is currently being commissioned and started up. Commissioning of the MSC systems at the Mount Vernon, Indiana, and Obion facilities in Rives, Tennessee, is expected to begin in late August and early October, respectively. “The construction of these projects is nearing completion,” Becker said.
Engineering is underway on the planned MSC project for Superior, Iowa, with groundbreaking currently scheduled for November. The Madison, Illinois facility will be the next to add MSC technology, with that project expected to start in early 2023. Becker also noted that Green Plains has made progress with clearance in Minnesota, which could lead to the addition of MSC systems. to these plants earlier than originally planned.
Construction is also underway on the MSC turnkey joint venture (JV) at the Tharaldson Ethanol plant in Casselton, North Dakota, with commissioning of this project expected to begin in mid-2023, Becker added. .
Green Plains is set to open its first commercial-scale clean sugar facility in August. This project, located in Shenandoah, Iowa, is currently on track to start in 2023, according to Becker. Once operational, the facility will produce several grades of dextrose and glucose for food and industrial applications.
Green Plains reported second-quarter net income of $46.4 million, or 73 cents per diluted share, compared with $9.7 million, or 20 cents per diluted share, in the same period of the year last. EBITDA was $84.4 million, including a USDA COVID-19 relief payment of $27.7 million, compared to $50.9 million in the same period of 2021.