grh_logo.pngGrapevine-based renewable energy company, GreenHunter Energy, Inc. (NYSE AMEX: GRH), last week said it is contemplating over the option of selling its $70 million-property located by the Houston Ship Channel, recognized as America’s largest biodiesel refinery. The company has engaged an investment firm to consider the possibility of selling the plant by mid-November, alongside other options such as finding domestic or international strategic partners, or alternative financing that would resuscitate the refinery.

  According to GreenHunter, the major objective of the aforementioned options is to bring itself into a sound financial standing while it seeks to clear about $50 million in debts with a major lender.

  Reckoned as “the future of energy in Texas and the United States” upon its official opening a year ago, the 105 million gallon per year facility has not been operating as of February, citing slack demand due to the challenging market and economic conditions, newly imposed tariffs on U.S diesel exports to Europe and lowered fossil fuel prices.
The stagnation of the plant came in hot on the heels of a temporary closedown after it got damaged during last year’s Hurricane Ike.

  In an overlapping announcement, the company also said it managed to negotiate amendments to its $48.5 million loan agreement with the European commercial bank, WestLB AG, allowing it to delay payments until November 15.

  “By amending our existing credit agreement with WestLB, we have positioned the company in a manner that should allow us time to seek a number of solutions to our present financial situation”, commented the company’s president, chairman and chief executive officer, Gary C. Evans.

  Thus far, GreenHunter Energy which has of late incorporated a variety of vegetable oils and animal fats in its biodiesel production has got along reasonably better in the industry as compared to most corn-based ethanol producers. VeraSun Energy Corp. (OTC: VSUNQ), Aventine Renewable Energy (NYSE: AVR), and Pacific Ethanol Inc. (NASDAQ: PEIX), are some of the biofuel producers which have recently faced bankruptcy or cut production as the soaring costs of feedstock made it impossible for the companies to stay profitable.

  GRH stock was selling at $2.10 in the afternoon trading session of June 29, slightly up from the previous closing of $2.04.

 Reference:
http://www.greenhunterenergy.com/