Verbio North America breaks ground on South Bend plant expansion
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Verbio North America is breathing new life into a biorefinery in South Bend. The company broke ground Thursday on its $230 million upgrade and expansion of the former South Bend Ethanol plant on the city’s south side.
Verbio North America is a subsidiary of Germany-based Verbio AG, and the Hoosier investment is the company’s second imprint in the United States.
“With the right renewable energy policies in place, we believe Indiana and the U.S. have enormous potential, and we are committed to working with South Bend to create the conditions where we can grow and where everyone benefits,” Verbio CEO Claus Sauter said. “We will be committed members of this community. We buy more from Indiana growers. We have Indiana employees from top to bottom. We are creating economic development right here in Indiana up and down the supply chain.”
The integrated biorefinery will produce bioethanol and renewable natural gas. Currently producing 65 million gallons of corn ethanol each year, the company plans to expand production at the plant to 85 million gallons by the end of 2024 and up to 100 million by December 2025. Renewable natural gas production is expected to begin in 2026, with a projected 2.8 billion cubic feet produced annually, Sauter added.
Following the purchase of the plant from Mercuria Investments in 2023, the city of South Bend approved the expansion plans in April. Verbio will erect eight anaerobic digester tanks in addition to the existing eight, construct new buildings and add new process equipment.
“This is a business that’s going to grow. It’s a very exciting time for the United States,” Greg Northrup, president of Verbio North America Holding Co., said. “We’ve done really well with wind and solar energy; this is the next step as it relates to renewable fuels. That’s what makes this so exciting.”
Adding that the economic climate for biofuels and renewable energy in the United States is more welcoming than in Europe, Sauter disclosed that the company’s expansion into the country had been in the works since 2017, long before the Inflation Reduction Act.
“I like the clear, strategic approach in the U.S. I like the professional job U.S. farmers are doing, and the decision to come here to the U.S. we made far before the IRA,” Sauter said. “The IRA is a great instrument to accelerate our business and I think it is a pragmatic approach. So don’t blame the U.S. government; if you really want to see how it doesn’t work, come to Europe.”
The city of South Bend offered property tax abatements to the company. The Indiana Economic Development Corp. also included income tax incentives as part of the investment deal. The company also received an investment tax credit of 30% of its capital funding through the Inflation Reduction Act, Northrup said.
While the company plays in the biofuel and technology space, Sauter said his vision for the company includes expanding the company’s reach in chemistry and pharmaceuticals.
Verbio uses corn procured locally from growers in the South Bend area as feedstock for its ethanol production. RNG will be created from corn stillage, a co-product stream coming from the ethanol production process.
“The technology approach we are applying integrates bioethanol and RNG production in a unique way. We are working with a closed-loop system that uses all raw materials sustainably and most efficiently,” Sauter said. “Almost 100% of all accumulated waste products are being refined in further steps into high-quality fertilizer products that are then sold back to growers.”
The company’s inaugural RNG plant in the United States in Nevada, Iowa, has been producing RNG from corn stover since 2021. The Nevada plant is expected to start ethanol production as well in the coming weeks.
“To be chosen for this historic investment and leading technology in the sixth district is a wonderful opportunity for the community as well as a driving force for the economic prosperity of the region,” Sheila Niezgodski, South Bend sixth district councilwoman, said. “It is my hope that this will also help spur other types of green technology and keep South Bend on the forefront of sustainability that will also produce good paying jobs.”
The company has 250 employees in North America with 61 employees currently in Indiana and plans underway to add another 29 by the end of the year. Positions will cut across engineering, administrative staff and management roles.
“Verbio’s most important assets are its employees and staff. The technical competence, engagement, innovation and flexibility of our workforce are all key success factors and we want to keep them for the long term,” Sauter said. “This is why we put forth efforts to keep employee turnover low by providing transparency in our communications, maintaining an open feedback culture, a fair remuneration system, flexible work arrangements and by the use of employee loyalty programs.”
The RNG produced at the South Bend plant will be fed to the regional natural gas grid and support the needs of industrial and commercial users. With over 250 ethanol plants in operation across the country, the company anticipates immense growth opportunities.
“Corn for feedstock, natural gas grid, high voltage power, major highways along with other critical infrastructure, South Bend, Indiana has it all.” Sauter said. “I’m very excited about the future here and knowing that what we are doing is a win win win win for growers, rural communities, the environment and sustainable renewable energy. Sustainable energy just works with sustainable agriculture.”