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White Energy is one of the leading producers of biofuels and animal feed in the U.S. and will be offering acre contracts to local producers to purchase all bushels grown on a set amount of acres at a set price during the 2022 growing season.
White Energy is one of the leading producers of biofuels and animal feed in the U.S. Between two grain processing facilities in Hereford and Plainview, Texas, White Energy has the capacity to produce approximately a quarter-million gallons of ethanol per year in addition to other co-products such as wet and dry distillers grain.
To achieve maximum production capacity for a year, the company needs roughly 90 million bushels of grain. Currently, White Energy’s total grain use comprises about twenty percent grain sorghum, which is around 20 million bushels, but as part of its collaboration with National Sorghum Producers and through its commitment to sustainability and the sorghum industry, White Energy plans to increase that percentage.
“White Energy is pleased to collaborate with NSP as an industry leader striving toward a low-carbon future locally, nationally and abroad. Together, as one collective voice, we will be prominent and influential in shaping that future and the policies guiding it, while at the same time bringing value back to our partner farmers,” White Energy Vice President of Commodities and Risk Management Christopher Hughes said.
“To accomplish this, we are pushing to source a greater portion of our grains right here at home benefiting the same communities that have allowed us to grow and succeed as not only a company, but also as a good corporate citizen,” he added. “As we continue pushing to increase plant efficiencies on our path to carbon-neutral, locally and regionally sourced sorghum has become a premiere feedstock and remains vital in allowing us to make these significant strides while producing green renewable biofuels to power America forward.”
White Energy is willing to buy grain year-round but said it purchases the majority of its grain at harvest in November and December. White Energy has extensive storage capabilities, which gives it the flexibility to work with farmers on delivery schedules as well as sale methods, whether it is purchasing the grain directly from farmers or through trusted elevators.
White Energy will be offering acre contracts to local producers to purchase all bushels grown on a set amount of acres at a set price. The contracts will include an “act of God” clause, providing producers with a level of protection should drought conditions or other natural disasters result in complete crop loss.
Traditionally, White Energy has had the majority of their grain delivered by rail from the Corn Belt, but moving forward, the company said it will evaluate ways to progress and adapt to be more supportive of its local communities and farmers by sourcing more grain locally. Not only does this economically support the local community, but it also improves the marketability of the ethanol produced by White Energy by reducing the overall carbon footprint of the production of that ethanol.
“The closer we can source our grain, that just makes our already green biofuel product that much greener with that much smaller carbon footprint,” Hughes said. “At the end of the day that’s the goal we have: How can we put liquid fuel into people’s gas tanks that is as earth-friendly as possible? That’s why we’re here.”
The ethanol industry historically accounts for 30 percent of the total demand for U.S. sorghum. White Energy committed to a Gold+ Level industry partnership with NSP in February, and through the partnership NSP looks forward to sorghum farmers seeing support from one of the the leading domestic markets and one of the nation’s leading producers in the ethanol industry.
“Although the ethanol industry has experienced policy challenges in recent years,” NSP CEO Tim Lust said, “the enhanced focus on climate and sustainable sources of fuel, feed and fiber make the sorghum and the ethanol industries well poised to partner for success now and in the future. We see tremendous opportunity to do that with White Energy.”
For more information on White Energy or to sign up for texts or email with daily bids, visit White-Energy.com. White Energy also welcomes guests and questions at their Hereford and Plainview locations.
This story originally appeared in the Spring 2022 Issue of Sorghum Grower magazine.