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Nebraska co-op, ethanol plants to join forces

One of Nebraska’s largest co-ops is combining assets with a California-based ethanol maker to create a new entity.

Aurora Cooperative Elevator says it will combine its Aurora West Grain Elevator with two Aurora ethanol plants owned by Pacific Ethanol.

Aurora co-op CEO Chris Vincent says the combined entity, called Pacific Aurora LLC, will be more efficient with better performance.  He says Aurora Cooperative’s grain operations experience combined with Pacific’s ethanol production expertise will add value to both companies, their stockholders, and the communities.

Aurora Cooperative has $1 billion in sales and 80 locations in seven states. Pacific Ethanol owns eight ethanol plants in five states.  Aurora co-op is contributing $30 million in cash to the deal and will have a 26 percent ownership stake in the company.