Jun 15 2009
Sunoco, Inc. (NYSE:SUN) announced today that it has completed the previously announced purchase of a 100 million gallons-per-year ethanol manufacturing facility in Volney, New York from Northeast Biofuels, LP for $8.5 million.
As the largest ethanol manufacturing facility in the Northeastern United States, where much of Sunoco’s retail gasoline network is located, the facility is uniquely situated to serve the company’s ethanol requirements. When running at full capacity, the facility is expected to supply approximately 25% of Sunoco’s ethanol needs.
Speaking on the transaction, Sunoco Chairman and Chief Executive Officer Lynn Elsenhans said: “We are pleased to join the Oswego County community and look forward to playing a productive role in the region. Operating this facility, and sourcing as much corn as possible from local growers, will contribute to the region’s economy and support the creation of ‘green’ jobs.”
As a provider of transportation fuels, Sunoco views this purchase as a first step into alternative fuels, an area of possible growth for the company that it will continue to evaluate.