HANOVER, N.H.--(BUSINESS WIRE)--April 12, 2006--New Energy Capital Corp. today announced a major investment in a 110 million gallon per year ethanol production facility currently under construction in Clymers, Indiana. The plant, adjacent to a grain storage terminal owned by The Andersons, Inc. (NASDAQ:ANDE), will produce ethanol from corn grown by local farmers and will also produce distillers grains, a high quality feed supplement ideal for the region's dairy industry. Ethanol from the plant will be blended with gasoline for use in the transportation sector, cutting U.S. oil dependence, stimulating the nation's farm economy, and reducing greenhouse gas emissions. The plant will be the largest dry mill ethanol plant east of the Mississippi.

The facility, which will be managed by The Andersons, is expected to be completed by the first quarter of 2007 and will involve an aggregate investment of approximately $142 million. The designer and general contractor is ICM, Inc. of Colwich, KS, an industry leader in ethanol technology and plant construction. The Andersons and New Energy Capital are joined by six other equity investors. CoBank of Omaha, Nebraska led a consortium of banks and finance companies to provide construction and term financing. Plant construction will involve approximately 250 new jobs and operations 40-50 full time equivalent staff.

New Energy Capital and The Andersons are also investors in a 40 million gallon per year ethanol plant in Rensselaer, Indiana and a 55 million gallon plant in Albion, Michigan. Both plants are expected to be in production by the end of 2006.

New Energy Capital CEO Scott Brown said: "We have great regard for The Andersons and are delighted to be partnering with the company on this and other projects. This investment deepens our commitment to the biofuels industry and will deliver important benefits to the nation and our shareholders."

Mike Anderson, President and CEO of The Andersons, Inc., said: "We are excited to be in the ethanol business and believe it is a natural fit for us. We have worked closely with New Energy Capital on this and other ethanol projects, and enjoy our strong collaboration. We believe New Energy Capital's commitment to the ethanol and biofuel industry makes them a strong and valuable business partner.

Dan W. Reicher, New Energy Capital President and former United States Assistant Secretary of Energy, said: "We are particularly pleased to be making this investment at a time when the price of crude oil exceeds $65 per barrel and there is rising concern about the nation's oil dependence and climate change."

New Energy Capital Corp. (www.newenergycapital.com) is a New England-based company that invests in, owns and operates renewable energy and distributed generation projects. In addition to ethanol facilities, these include a biodiesel production plant in Delaware, cogeneration projects in California and Massachusetts, and a biomass power plant in Maine. The Company is funded by VantagePoint Venture Partners (www.vpvp.com) one of the nation's largest and most active venture capital firms, and the California State Teachers' Retirement System (CalSTRS).

The Andersons, Inc. (www.andersonsinc.com.) is a diversified company with interests in the grain, ethanol and plant nutrient sectors of U.S. agriculture, as well as in railcar marketing, industrial products formulation, turf products production, and general merchandise retailing. Founded in Maumee, Ohio, in 1947, the company now has operations in seven U.S. states plus rail equipment leasing interests in Canada and Mexico.

Copyright Business Wire 2006

New Energy Capital

New Energy Capital

More from New Energy Capital