Monday January 21, 2019

Sunoco Fulton Ethanol Plant to Have New Owner

Attis Industries to acquire fuel-making plant, malt house in Volney
By Lou Sorendo

    Attis Industries Inc. (NASDAQ: ATIS) is acquiring Sunoco's ethanol plant in Volney, according to Sunoco sources.


    Attis Industries is a diverse organization with businesses in the health care, medical waste, and environmental technology sectors.


    At full production rate, the ethanol facility is able to produce in excess of 85 million gallons of fuel-grade ethanol per year, along with millions of pounds of dried distillers grains and carbon dioxide. It also produces nearly 2 million gallons of corn oil.


    The ethanol produced by the Sunoco Fulton ethanol plant is the official fuel of NASCAR®.


    The plant spans more than 90 acres and boasts one of the largest privately owned rail yards in the Northeast with more than six miles of track.


    Total consideration for the transaction is $20 million, according to Sunoco.


    As part of the deal, Sunoco will enter into a 10-year ethanol off-take agreement with Attis. 


    An off-take agreement is a pact between a producer of a resource and a buyer of a resource to purchase or sell portions of the producer's future production.


    The sale includes the 1886 Malt House, one of the largest craft malting facilities in the United States. Established in 2016, the 40,000-square-foot brew house supplies 60 tons of malt per week, or 2,000 tons of malt annually.


    For nearly 25 years — 1971 to 1994 — the town of Volney was home to a Miller Brewing Co. plant. The plant sat vacant until 2007 when it was repurposed as an ethanol production facility.


    The sale is set to close in 45 days, according to Erin Tones, manager of marketing and logistics at Sunoco. The transaction is subject to regulatory clearances and customary closing conditions.


    Sunoco LP (NYSE: SUN) is a master limited partnership that distributes motor fuel to approximately 10,000 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states.


    Sunoco's general partner is owned by Energy Transfer Operating, LP, a subsidiary of Energy Transfer LP (NYSE: ET).