Big thank you to Jan Lundebrek and Dan Benson for their many years of service on our board. Jan was on the board from the beginning and was a very good steady hand helping guide the board over the years. Dan‘s 27 years of service helped guide CVEC to its’ success today. Enjoy your retirement.
Margins are very good this year. Our main board focus is keeping our Benson facility up to date and strategic growth for the future. Our goal is to grow gallons and be in the top 25% of the industry with profit or better. We are investing a great deal of time in how to grow the plant. Thank you for your input to those that took the survey. As we move forward we’ll discuss expanding the Benson facility. This would be a significant expansion, and we will provide more details at the September shareholder meeting. Our Guardian investment plants are expanding. The largest being in Hankinson, ND, which is adding 100 million gallons. Our investment in the Guardian plants has been very good for us and will continue thanks to good management, demand for ethanol, and the 45Z tax credit.
Your board approved a large energy project putting in two new boilers and two new steam turbines to reduce energy need at the plant by 70%. Our corn oil project from last year is really paying off with high yields in a great market.
The board has decided to not pay a spring distribution and rather focus our efforts on the fall distribution, but because of our plant’s diversification we continue to make good money. Thanks for your patience.
Unleaded 88 (E15) and exports have helped the demand for ethanol in 2025 and into 2026. Unleaded 88 (also known as E15) has 15% blend of ethanol versus 10% blend in unleaded 87. By law, cars that are 2001 or newer can safely utilize Unleaded 88 and save significant money at the gas pump. Exports are up significantly due to several countries recognizing ethanol as a way to improve their environment while saving money versus fossil fuels.
I also want to comment on the fact that we have an excellent board that is focused on CVEC and shareholders as we continue to move forward. We have one of the best management teams and staff in the country. We look forward to seeing everyone on September 10 for our informational meeting.