Poet acquires major biofuel business, expands production capacity by 40%

Makenzie Huber
Sioux Falls Argus Leader
Poet headquarters

Poet, a Sioux Falls-based producer of biofuels, has acquired the bioethanol assets of Flint Hills Resources, a Kansas-based company.

The acquisition expands Poet's production capacity by 40%, which equates to an increase of 3 billion gallons a year. Flint Hills is the nation’s fifth-largest biofuels producer.

The acquisition includes six bioprocessing facilities located in Iowa and Nebraska and two terminals in Texas and Georgia. Poet now operates 33 bioprocessing facilities across eight states.

“We are excited to further grow Poet's footprint across the Midwest and bring even more high-quality, plant-based bioproducts to consumers all over the country," Jeff Lautt, Poet president and COO, said in a statement. "This acquisition will also create additional opportunities in Sioux Falls and we look forward [to] expanding our network of talented team members."

The move allows Poet to serve a larger role and have a bigger impact on fighting climate change, Poet founder and CEO Jeff Broin said in a statement. Recent studies demonstrate the ability of biofuels to immediately contribute to decarbonizing the transportation sector and lowering greenhouse gas emissions.

“We’ve been a leader in the biofuels business for 33 years and have never wavered in our belief in the power of agriculture and biofuels to offer the most accessible, near-term solution to climate change," Broin said in a statement. "With this move, we’re demonstrating our commitment to the future of low-carbon, plant-based liquid fuels."

The acquisition expands Poet's geographic footprint, offering more market access as well.

“We are on the cusp of a new sustainable economy that will be powered by renewable energy," Poet Chief Commercial Officer Bob Casper said in a statement. "Bioethanol is critical to this new economy and will continue to be so for years to come."