Williams signs another pact to market fuel-grade ethanol

A unit of Williams, Tulsa, said Friday it has an agreement to market all fuel-grade ethanol produced by Northeast Iowa Grain Processors Cooperative, Earlville, Iowa. The deal is Williams Bio-Energy LLC's seventh ethanol-marketing agreement in since the first of the year.


By the OGJ Online Staff

HOUSTON, July 6 -- A unit of Williams, Tulsa, said Friday it has an agreement to market all fuel-grade ethanol produced by Northeast Iowa Grain Processors Cooperative, Earlville, Iowa.

The deal is Williams Bio-Energy LLC's seventh ethanol-marketing agreement in since the first of the year. Terms of the deal, which went into effect June 29, were not disclosed.

Williams is the second-largest producer and marketer of ethanol in the US, supplying 320 million gal/year through its own production, business relationships, and marketing agreements. Williams produces 130 million gal/year through its wholly owned facility at Pekin, Ill., and 75%-owned Aurora, Neb., facility.

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

Miller said, "Williams meets this demand growth through expanding relationships to purchase and resell ethanol produced by third parties through the company's extensive distribution system.

"Our agreements with Northeast Iowa Grain Processors Cooperative and other producers, including Tri-State Ethanol Co. of Rosholt, SD; Quad County Corn Processors Cooperative of Galva, Iowa; Heartland Grain Fuels of Aberdeen and Huron, SD; and Sunrise Energy of Blairstown, Iowa, help us meet market needs."

Ethanol is usually produced from corn to be sold as an octane enhancer. Ethanol-blended fuels have 12% of the US automotive fuels market.

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