By Chad Friese
As we close out the 2025 operating year and prepare for another Minnesota winter, I want to take this opportunity to recognize the outstanding efforts of our CVEC staff. Their dedication and resilience have kept our operations strong, enabling us to meet the year’s challenges while positioning the plant for continued success in 2026.
We are pleased to report that CVEC remains in a strong financial position, supported by disciplined operations, thoughtful reinvestment, and a continued focus on innovation. Throughout the year, we advanced several key strategic initiatives aimed at improving efficiency, renewing critical infrastructure, and pursuing sustainable growth opportunities.
This year, we completed projects that expanded Distillers Corn Oil (DCO) production and fully transitioned to the lime centrifuge as part of our water treatment system, replacing the press technology to remove lime. These investments have already improved process reliability, lowered costs, and contributed to stronger margins.
Looking ahead, sustainability and efficiency remain central to our strategy. The Board has continued to evaluate solar energy options as a potential cost-effective and renewable power source for our operations. Additionally, the team is advancing feasibility work on a steam-to-electric turbine system that could further reduce electrical demand from the grid and lower our carbon intensity. This would be an investment that replaces our current 30-year-old boilers to high efficiency models.
We also explored new distillation technologies designed to reduce energy consumption and improve throughput. These efforts reflect our broader goal of refreshing aging assets while positioning CVEC for measured, sustainable growth. This exploration has ultimately led to discussions of expanded throughput andinvestment into the next 30 years of production.
Our investments performed well again in 2025, contributing to a strong financial foundation. The Guardian Energy assets continues to generate reliable returns, validating our long-term strategy, and creating opportunity for continued growth. Meanwhile, Ringneck Energy has continued to build solid operations in 2025, increasing production, strengthening earnings and continuing to invest in theirfuture success while providing strong income. These developments reinforce our confidence in the direction of our investment portfolio.
As we prepare for 2026, we recognize that the ethanol industry continues to evolve rapidly. CVEC remains committed to staying ahead of these changes through innovation, strategic partnerships, and responsible asset management. Every decision we make reflects our collective mission—to sustain profitability, reduce carbon intensity, and create long-term value for our shareholders and community.
We deeply appreciate the continued encouragement and trust from our shareholders. Let’s carry this momentum into the new year with optimism and focus. I look forward to connecting with you at our Annual Meeting in January, where we’ll share updates on our strategic initiatives and create discussion for aclearer roadmap for the future of CVEC.
Thank you for being part of another successful year. Together, we continue to shape the future of ethanol—efficient, sustainable, and strong.