Officials with ethanol producer REX American Resources on Wednesday announced another delay in a planned expansion of the company's 150 million gal/year One Earth plant in Gibson City, Ill.

The plant, which is the center of the company's carbon capture and sequestration project, is not expected to meet its mid-2025 deadline for completing the expansion work, Chief Executive Zafar Rizvi said on a call to discuss the company's financial results for its fiscal fourth quarter ended Jan. 31.

Rizvi attributed the delay to a review of the expansion project "in keeping with our priority of maintaining efficiency and higher production level at our facilities."

When it released its fiscal third-quarter earnings, the company said it was extending the timeline for the expansion from the first quarter of 2025 to mid-year due to delayed equipment deliveries.

Rizvi on Wednesday said the company realized some of the equipment may not be able to handle the capacity upgrade goal of 200 million gal/year, adding that it wants to position the facility for an eventual additional expansion to 225 million gal/year, without added costs. "And that's the main reason that our budget increased and our timeline increased."

REX said it plans to spend $220 million to $225 million on the Gibson City work, including the carbon capture and sequestration project.

Work on capture and compression facilities at the plant has been completed, Rizvi said, and the company is awaiting Class VI injection well permits from EPA that are expected sometime in October.

"During 2025, we anticipate moving forward in the sequestration portion of the project," Rizvi said.

REX reported fiscal Q4 net sales and revenue of $158.2 million, down by 16% year to year. Officials attributed much of the decline to lower product prices.

Its reported fiscal Q4 net income of $11.1 million, down 46% year to year.

REX said ethanol sales in the quarter rose by 3.6% from a year earlier to 74.7 million gal, at an average sales price of $1.64/gal. It sold 160,000 tons of distiller dried grains at an average price of $143.81/ton and 23.5 million lb of corn oil at an average price of 44cts/lb.

The company also said fiscal 2024 ethanol sales totaled 289.2 million gal, up 1.3% from 2023 at an average sales price of $1.71/gal.

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--Reporting by Spencer Kelly, skelly@opisnet.com; Editing by Jeff Barber, jbarber@opisnet.com

(END) Dow Jones Newswires

March 27, 2025 11:34 ET (15:34 GMT)

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