Jeff Broin conference call opening statement

POET announced today the purchase of a 90 million gallon-per-year ethanol plant located just outside Cloverdale, Ind. and previously operated by Altra Biofuels.

The transaction closed June 29. Once open, the Cloverdale plant will be POET’s fourth in Indiana and 27th overall, putting annual ethanol production capacity at 1.7 billion gallons per year.

POET CEO Jeff Broin said the productive agriculture community in and around Cloverdale, coupled with POET’s unique processes and technology, will make POET Biorefining – Cloverdale a leader in the industry.

“We have been looking at potential acquisitions for some time,” Broin said. “This plant, in this community, will be a perfect fit for what we do at POET.”

The plant will create 40-45 direct jobs and hundreds of secondary jobs, something Indiana Lt. Governor Becky Skillman said would be a welcome addition for the area.

“Biofuels continue to be a vibrant industry here in Indiana, and we’re glad that POET is making another commitment to Indiana and its workers,” Skillman said. “These new jobs and the use of this existing facility will be a tremendous boost for Putnam County.”

POET will install the company’s proprietary process technology and improve the original plant design. The approximately $30 million in upgrades include BPX, POET’s patent-pending fermentation process which uses enzymes instead of heat, reducing energy use by 10-15 percent. In addition, POET will install a water recovery system and new pollution control equipment. POET expects to reopen the plant in about 9 months.

Adding BPX to the facility will allow for production of Dakota Gold™ Dried Distillers Grains with Solubles, POET’s branded high-protein animal feed. Dakota Gold is the industry leader in feed products due its high nutrient content and the company’s commitment to providing a consistent product to the market. The Cloverdale plant will have capacity to produce 246,500 tons of Dakota Gold annually.

A number of other processes could be installed at the plant in the future, including cellulosic ethanol production from corn cobs, which POET will commercialize soon in Emmetsburg, Iowa.
“This plant has all the ingredients we need to put together a top operation: a steady corn supply, rail access, a great workforce and productive farmers,” Broin said. “The ample corn supply in the area includes significant quantities of agricultural waste, making the plant a likely location for cellulosic ethanol production in the future.”

Facts about POET Biorefining – Cloverdale:
- Opened and operated under Altra Biofuels for a short time in 2008
- Capacity: 90 million gallons per year
- Rail: CSX
- Annual corn consumption: 31 million bushels
- Dakota Gold Brand DDGS produced annually: 246,500 tons
- Jobs at the plant: 40-45 FTE (over 90% local)
- Annual Payroll and Benefits: more than $2 million
- Construction Time Period: 9 months

About POET
POET, the largest ethanol producer in the world, is a leader in biorefining through its efficient, vertically integrated approach to production. The 22-year-old company produces more than 1.6 billion gallons of ethanol and 9 billion pounds of high-protein animal feed annually from 26 production facilities nationwide. POET also operates a pilot-scale cellulosic ethanol plant, which uses corn cobs as feedstock, and will commercialize the process in Emmetsburg, Iowa. For more information, visit http://www.poet.com.

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