|
HOUSTON BIODIESEL, LLC AND LANSING ANNOUNCE BIODIESEL MERCHANDISING AND FEEDSTOCK ORIGINATIONS AGREEMENTS (HOUSTON, TX) – September 5, 2006 — Houston Biodiesel, LLC, a subsidiary of TexCom, Inc., in preparation for construction of a 35,000,000 gallon per year biodiesel plant in Seabrook, TX, has entered into both a biodiesel merchandising agreement with Lansing Ethanol Services, LLC and a feedstock originations agreement with Lansing Trade Group, LLC. These agreements, both set to run for 4 years from the completion of the construction of the plant in 2007, will couple Houston Biodiesel's large physical production capabilities in a strong position in the biodiesel industry with Lansing's strength in managing commodity price risk, providing merchandising and logistics services, and its significant presence in the biofuels marketplace. Houston Biodiesel has significant advantages at its Seabrook location just outside of Houston, including its tri-modal transportation capabilities on inbound and outbound traffic for truck, rail and water conveyance. The facility is located on the Houston Ship Channel "Refiners' Row," which provides quality buyers for biodiesel. This plant will produce biodiesel from soybean oil and other feedstock based on the most economic source. The location of the facility also provides a key competitive advantage in allowing Houston Biodiesel to be more flexible in the sourcing and procurement of feedstocks for biodiesel production. Lansing strength as a trading company will provide Houston Biodiesel with competitive alternatives for inputs into the production of biodiesel. TexCom has teamed with a strong equity partner in US Renewables Group for the Houston Biodiesel LLC plant. USRG has made significant investments in bio-energy, including ethanol and biodiesel, and is working to provide the advantage of scale to this industry. "The biodiesel industry is experiencing a period of unprecedented change that is creating an environment ripe for large scale production of biodiesel that we hope to capture with this project and our future expansion plans," said Lou Ross, CEO & President of TexCom, Inc. and Manager of Houston Biodiesel, LLC. "We approached Lansing due to their world class trading, marketing and logistics execution capabilities, history of successful market development in Biofuels, and strong customer focus. We see Lansing and its capabilities as key to our success with this operation, as well as our significant expansion plan for the future." Bill Krueger, President and CEO of Lansing, said, "Houston Biodiesel has a very professional and engaged management team. They know what it takes to develop a successful business model. We believe this team will create a highly competitive and profitable biodiesel business with opportunities for growth by developing additional plants after they are up and running at this facility in Seabrook." Lansing has been in the business of trading commodities for 76 years. Rapid growth of its business over the past decade has come from responding to market place needs. Notable is the formation of Lansing Ethanol Services to respond to the need for a market maker in the biodiesel market. The services Lansing is providing to Houston Biodiesel under these agreements are a direct extension of the trading skills which have been with the company since its beginning. Lansing is actively trading a large number of commodities from coast to coast, with a growing international presence. About TexCom, Inc. About Lansing Trade Group, LLC Lansing Trade Group is a privately owned firm formed in 1931. The current ownership group has grown Lansing into a national trading company, growing beyond its grain roots with growth into the energy market. Lansing Trade Group formed Lansing Ethanol Services, LLC in March 2006 to trade ethanol. Lansing Trade Group trades whole grains, feed ingredients, and energy products, including biodiesel, in U.S. domestic and export markets. Current annual revenues are approximately $5 billion. Company headquarters are in Overland Park, Kansas. Additional information is available online at www.lansingtradegroup.com and www.lansingethanolservices.com.
|
|
 |
|
