CVEC is the processing company. All the employees and inventory reside in this entity. Along with CVAC, the members are partners in CVEC. The structure of CVEC means tax liability is borne by the partners. The vast majority of income and expense items that flow to the Statement of Operations originate in CVEC. An investment in CVEC is based on units and the number of units represents the percentage of the company owned. The “units” in CVEC are equivalent to the “shares” in CVAC. CVEC houses all of the subsidiary companies, including:
- Glacial Grain Spirits (GGS): this is the entity that our industrial and beverage grade alcohol are manufactured under. 100% CVEC owned.
- Renewable Products Marketing Group (RPMG): Owned by 14 ethanol producers, RPMG is an ethanol and co-products marketing company that CVEC was a founding member of. Headquartered in Shakopee, MN, RPMG currently markets approximately 1.3 billion gallons of ethanol and 1.5 million tons of distillers grains annually. RPMG employs over 35 people. 7.7% CVEC owned.
- Guardian – Janesville: A 110-mgy-ethanol facility located in Janesville, MN. It was purchased out of bankruptcy by six farmer-owned ethanol companies in 2009. 13% CVEC owned.
- Guardian – Lima: A 55-mgy-ethanol facility located in Lima, Ohio. It was purchased by three farmer-owned ethanol companies (51%) and Paladin Capital (49%) in 2010. 12% of the majority portion CVEC owned.
- Guardian – Hankinson: A 130-mgy-ethanol facility located in Hankinson, ND. It was purchased by four farmer-owned ethanol companies in 2013. 4.17% owned by CVEC.
- Frontline BioEnergy, LLC: A gasification technology company headquartered in Ames, Iowa. 9% owned by CVEC.
- In addition, CVEC has an investment in: Bushmills Ethanol, a 65 mgy ethanol producer located in Atwater, MN, and KAAPA Ethanol, a 60 mgy ethanol producer located in Miden, NE.
- Benson Corn Pool (BCP): An autonomous, fee-based corn purchasing company for the use of CVAC shareholder who would rather another entity handles their physical delivery requirement.