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With the purchase of two ethanol plants in Illinois — CHS Rochelle in 2014 and CHS Annawan in 2015 — CHS increased its role in the renewable fuels industry. The renewable energy production adds value across the entire CHS ag and energy supply chain.

CHS ethanol plants create an alternative market for growers to sell their corn, which is distilled and blended with gasoline to increase octane and improve emissions quality. Not only does ethanol gasoline reduce emissions and promote North American energy independence, but it is also an economical source of octane for the gasoline supply chain. A major byproduct of ethanol production is distillers dried grains with solubles (DDGS), a high-protein animal feed in demand worldwide to supplement livestock diets.

“Anchor assets like Rochelle and Annawan are very impactful to our enterprise, because they provide an outlet and a demand base for cooperatives and farmers in the region,” says Gary Anderson, CHS senior vice president, Grain Marketing North America, Renewable Fuels Marketing and Production. “In addition, the value-added margins are added to our patronage pools, creating value for all our member-owners who sell grains and oilseeds to CHS, which leads to closer alignment and further opportunities.”