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Posted on  

April 18, 2001

Williams Forms Agreement to Market Quad County Ethanol

Williams Bio-Energy LLC, a subsidiary of Williams, announced yesterday that it has entered into an agreement to market all fuel grade ethanol produced by Quad County Corn Processors Cooperative, a Galva, Iowa, cooperative association. The Quad County relationship marks Williams' fifth ethanol marketing agreement in the past four months. Financial terms of the Quad County agreement, which went into effect March 30, were not disclosed.

Williams is the second-largest producer and marketer of ethanol in the United States. Williams produces 130 million gallons of ethanol per year through its wholly owned facility at Pekin, Ill., and 75 percent owned Aurora, Neb., facility. These marketing relationships including Quad County, produce an additional 60 million gallons per year. Williams markets approximately 300 million gallons of ethanol annually.

Ron Miller, vice president of Williams Bio-Energy LLC, said the company is extending its distribution system primarily because of the growing demand for ethanol. Large market opportunities for fuel ethanol are developing in California as methyl tertiary butyl ether (MTBE) is being phased out of California Clean Burning Gasoline regulations by 2003. Additionally, MTBE in reformulated gasoline is being eliminated in New York and Connecticut by 2004.

"Williams meets this demand growth through expanding relationships to purchase and re-sell ethanol produced by third parties through the company's extensive distribution system," Miller said. "We are pleased to do business with Quad County and other producers including Heartland Grain Fuels (Aberdeen and Huron, S.D.), Minnesota Energy (Buffalo Lake, Minn.) and Sunrise Energy (Blairstown, Iowa) to meet market needs."

Mike Jerke, general manager of Quad County, said, "Quad County is extremely pleased to align with Williams Bio-Energy to market ethanol. Williams Bio-Energy is a recognized leader in the ethanol industry and this agreement will allow Quad City to benefit from Williams Bio-Energy's experience and expertise."
 

 

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