The Scoular Co. said it has an agreement to supply corn to a newly opened ethanol plant in Virginia and to operate the grain elevator at the facility.
The Omaha-based commodities trader said in a statement it also will sell the ethanol-production leftovers called distillers grain from the Vireol Bio-Industries plant in Hopewell, Va.
Partner Vireol bought the plant last year and completed substantial renovations; corn grinding was scheduled to begin this month. At full capacity, the plant is expected to use 22 million bushels annually of corn and produce 63 million gallons of ethanol.
Scoular said it has been operating the grain facility at the Hopewell plant since August 2013 and is already buying corn for the ethanol operation.
The grain facility is capable of unloading 75-car trains on the Norfolk Southern Railway.
“The plant will be a consistent, competitive source of demand for corn, creating a great opportunity for Virginia farmers as well as shippers of corn on the Norfolk Southern Railway,” said Doug Grennan, a senior group manager at employee-owned Scoular.
Scoular will also be selling dried distillers grain as feed to dairies and poultry operations in the area. Scoular said it also plans to sell the feed to overseas buyers.
“Scoular’s experience and long history in grain facility operation, feedstock procurement, and distillers grain marketing make our Hopewell partnership a winning combination for Scoular, Vireol, farmers and other grain suppliers,” said Peter McGenity, CEO of Vireol.
With $6 billion in annual sales, Scoular employs about 700 people at offices and grain terminals throughout North America. The 120-year-old company was ranked 54th last year on the Forbes list of privately held firms.