Rex Reports Strong Q1, Announces Progress with Capacity Expansion and CCS Projects

by Erin Voegele (Ethanol Producer Magazine) Rex American Resources Corp. on May 22 reported that the company achieved near-record financial results during its fiscal first quarter of 2024. The company also announced it secured 100% of the rights of way for its planned 6-mile carbon pipeline.

Rose discussed ongoing projects to increase the production capacity of the company’s One Earth Energy ethanol plant in Gibson City, Illinois, and add carbon capture and storage (CCS) capacity to the facility. He said the company is on track to expand capacity at One Earth Energy to 175 MMgy and plans to apply for a permit from the U.S. EPA to further increase production to 200 MMgy. Zafar Rizvi, CEO of Rex, said the initial expansion is expected to be complete in the fourth quarter. He also explained that no additional construction will be needed to boost capacity to 200 MMgy.

According to Rizvi, construction of the capture and compression facility for the One Earth Energy CCS project remains on track to be complete in July. The carbon capture and compression facility, however, is unlikely to be connected to the electric grid before the fourth quarter. Rizvi said efforts to secure a Class VI well permit from the EPA continue, with the company currently expecting to receive that permit by the first quarter of 2025.

The pipeline portion of the CCS project is also progressing. Rex reported it has reached agreement with 100% of the landowners for rights of way for the planned 6-mile carbon pipeline, which will connect the carbon capture facility at the One Earth Energy facility to the planned injection wells. Those agreements eliminate the need to use eminent domain to develop the pipeline.

Rex is the majority owner of Gibson City, Illinois-based One Earth Energy LLC and Marion, South Dakota-based NuGen Energy LLC. Those two facilities have a combined capacity of 300 MMgy. The company also holds ownership shares in West Burlington, Iowa-based Big River Resources West Burlington LLC; Galva, Illinois-based Rig River Resources Galva LLC; Dyersville, Iowa-based Big River United Energy LLC; and Boyceville, Wisconsin-based Big River Resources Boyceville LLC. Those four plants have a combined capacity of 425 MMgy. READ MORE

Excerpt from Ethanol Producer Magazine: Zafar Rizvi, CEO of Rex, said the CCS project at One Earth Energy in Gibson City, Illinois, continues to progress. Due to regulatory action by the state of Illinois that in July imposed a moratorium on the construction of CO2 pipelines, Rizvi said Rex has adjusted its construction schedule for the initial portion of the project. He noted that completing the capture and compression facility later in the year will mean a shorter period between completion of construction and testing, which will require a utility interconnection currently planned for completion during the first quarter of next year.

According to Rizvi, the Class VI injection well permit application with the U.S. EPA is still in process. The company expects a draft permit to be issued before year-end, which means final approval of the project could occur during the second quarter of 2025.

Rex is also working to expand ethanol production capacity at One Earth Energy. The initial expansion to 175 MMgy is on track for completion in the first quarter of 2025. Once that is complete, Rex will begin permitting activities to allow capacity to expand to 200 MMgy. READ MORE