Business Context and Reporting Period
Company: Green Plains Renewable Energy, Inc.
Filing Type: Form 8-K (Current Report)
Date: November 10, 2011
Event: Regulation FD Disclosure regarding a new capital project by wholly-owned subsidiary BlendStar LLC.
Key Financial Metrics
The filing does not provide standard financial performance metrics such as revenue, profit, cash flow, margins, debt, or liquidity for the reporting period. The document focuses exclusively on a specific capital expenditure project.
- Project Cost: Estimated between $15 million and $17 million.
- Local Spending: More than 60% of construction costs expected to be spent with local suppliers.
Material Changes and Project Details
Green Plains announced the construction of a new ethanol unit train terminal in Birmingham, Alabama, on the BNSF Railway. Key specifications include:
- Capacity: 160,000 barrels of storage; initial distribution capacity of approximately 385,000 barrels per month.
- Operations: Designed to receive full 96-car unit trains with 24-hour offloading capability and 24-hour truck loading service.
- Timeline: Expected completion in the third quarter of 2012.
- Existing Facility: The current BlendStar Birmingham terminal will be retrofitted to handle other biofuels and liquid products upon completion of the new facility.
Outlook, Management Commentary, and Risks
Commercial Status: BlendStar is in final negotiations with customers for multi-year terminaling agreements covering the facility's capacity.
Economic Impact: Management expects the project to generate additional jobs, tax revenues, and local commerce in the Birmingham market.
Risks/Contingencies: The filing does not explicitly detail specific risks or contingencies beyond the standard nature of construction projects and customer negotiations.
Investor Verification Checklist
- Confirm the finalization of multi-year terminaling agreements with customers.
- Monitor the project timeline for the third quarter 2012 completion date.
- Verify the final construction cost within the $15 million to $17 million range.
- Review the retrofitting plan for the existing Birmingham terminal.