Heron Lake BioEnergy

What Heron Lake BioEnergy does

Heron Lake BioEnergy, LLC is a privately held dry-grind ethanol producer headquartered in Heron Lake, Minnesota, operating a single-site production facility with 38 full-time employees. The company originated as Generation II in 2001, rebranded in 2004, raised capital through an equity drive in 2004-2005, and began ethanol production in September 2007. Its core technology is a dry-grind corn-to-ethanol process that yields three outputs: 67.5 million gallons of ethanol annually, 164,000 tons of distillers dried grains with solubles (DDGS), and carbon dioxide captured for sale to industrial buyers.

The company's revenue model is built on three transaction-based product streams. Ethanol is sold directly to petroleum marketers in Minnesota and across the United States as a clean-burning, high-octane fuel additive. DDGS, a high-protein livestock feed co-product, is sold to dairy, beef, swine, and poultry producers. CO2 is processed and sold to soft drink bottlers and food processors. Grain procurement is conducted directly with local and regional farmers through daily CBOT-linked cash bids communicated via text and email alerts, supported by DTN market data and weather integration on the company's website.

Heron Lake BioEnergy is capitalized by the original investor group that participated in its 2004-2005 equity drive; no subsequent institutional funding rounds, acquisitions, or ownership changes are documented. The facility's competitive positioning rests on mid-scale ethanol production efficiency, regional rail logistics access (recognized by Union Pacific's 2025 Pinnacle Award for Chemical Safety), and proximity to Minnesota corn supply. Distribution is direct-to-buyer with no developer-facing technology platform, no proprietary AI/ML capabilities, and no public revenue disclosure. The company is currently active and hiring for operational roles.

Name

Heron Lake BioEnergy

Legal name

Heron Lake BioEnergy, LLC

Website

https://heronlakebioenergy.com

Company type

Private

Founded year

2001

Operating status

Operating

Headcount range

11–50 employees

Short description

Heron Lake BioEnergy, LLC is a privately held Minnesota dry-grind ethanol producer operating a single 67.5 million gallon-per-year plant, selling ethanol to petroleum marketers, distillers dried grains to livestock producers, and captured CO2 to industrial buyers, sourced from 22 million bushels of locally procured corn annually.

Ownership category

akta.pro rank

Product category

Ethanol Manufacturing

NAICS

Ethyl Alcohol Manufacturing (325193)

akta.pro primary industry

Grain & Sugar-Based Ethanol Production (EUAAAHAA)

akta.pro secondary industry

Biofuel Co-products & Byproduct Processing (DDGS, Glycerin, CO2, Lignin) (EUAAAHAJ)

Keywords

• Dry grind ethanol production
• Renewable fuel manufacturing
• Distillers dried grains
• Corn-based biofuel processing
• Agricultural commodity manufacturing

Headquarters

HQ city

Heron Lake

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Hardware or Manufacturing

Cost components

Supply Chain, Operations, Personnel, Infrastructure, Technology or R&D

Revenue model

1. Ethanol Sales: Primary revenue stream from sale of ethanol to petroleum marketers as a clean-burning, high-octane fuel additive
2. Distillers Dried Grains (DDGS) Sales: Co-product sales of 164,000 tons annually of dried distillers grains sold to livestock producers as high-value nutritional supplement
3. Carbon Dioxide Sales: CO2 co-product sold to soft drink bottlers, food processors and other industries after further processing

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels3 records

Core offering

Heron Lake BioEnergy operates a single-site dry grind ethanol production facility in Heron Lake, Minnesota that processes approximately 22 million bushels of corn annually into 67.5 million gallons of ethanol, 164,000 tons of Distillers Dried Grains with Solubles (DDGS) livestock feed, and carbon dioxide for industrial use. The company sells ethanol as a clean-burning, high-octane fuel additive to petroleum marketers in Minnesota and nationwide, while DDGS is marketed to livestock producers (dairy, beef, swine, poultry) and CO2 is sold to soft drink bottlers and food processors.

Product overview

Heron Lake BioEnergy operates a single-site ethanol production facility that produces three main outputs: ethanol (67.5 million gallons annually), Distillers Dried Grains with Solubles (DDGS) as livestock feed (164,000 tons annually), and carbon dioxide. The company also provides grain purchasing services (accepting 22 million bushels of corn annually) and operates an online platform for cash bids and market information. The facility uses a dry grind ethanol production process and is positioned to serve ethanol markets across Minnesota and the nation.

Differentiator

Problem solved

Functional benefit

Products and services

• Ethanol Primary product produced at the Heron Lake BioEnergy facility. The plant produces 67.5 million gallons of ethanol annually, sold to petroleum marketers in Minnesota and across the nation as a clean-burning, high-octane fuel additive.
• Distillers Dried Grains with Solubles (DDGS) A co-product of ethanol production created as a high-value nutritional supplement for livestock. The plant produces 164,000 tons of DDGS annually, sold to livestock producers. Distillers grains are high in protein, fiber and fat, providing an excellent source of nutrition and energy for livestock including dairy and beef cattle, swine, and poultry.
• Carbon Dioxide (CO2) Co-product of ethanol production that, after further processing, is marketable to soft drink bottlers, food processors and other industries.
• Corn Grain Purchasing Grain receiving and corn purchasing service for the ethanol production facility. The plant uses 22,000,000 bushels of corn annually, accepts spot bushels, and pays for grain within 30 days of delivery via check or deferred pricing.

Quantifiable outcome

• 67.5 million gallons of ethanol produced annually
• +2 more outcomes

Named customers2 records

Segments3 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature1 record

Partnerships

One partnership is on record.

• American Coalition for Ethanol (ACE)minorOthersIndustry association providing advocacy and support for the ethanol industry. Listed as an industry resource link on the Heron Lake BioEnergy website under ethanol industry links.

Scale indicators5 records

Recent moves4 records

Expansion highlights3 records

Broad incumbents

• Cargill: One of the largest global ag commodity processors with corn-ethanol production as part of a diversified grain and food ingredient portfolio. Overlaps with HLB on corn ethanol and DDGS.
• Valero Renewable Fuels: Renewable fuels arm of major U.S. refiner Valero, producing ethanol at multiple Midwest plants. Overlaps on ethanol and DDGS but combines biofuel production with a larger petroleum refining and logistics business.
• Archer Daniels Midland (ADM): Global ag processor with a significant corn-ethanol segment alongside grain merchandising, oilseed processing, and animal nutrition. Overlaps with HLB on ethanol and DDGS but operates at vastly greater scale and product breadth.
• Bunge Global: Global agribusiness with major grain origination and corn processing interests including ethanol exposure via Moema (Brazil) and partnerships. Overlaps with HLB in corn origination, DDGS, and ethanol market participation but with vastly broader scope.

Regional players

• Granite Falls Energy: Minnesota-based dry-grind corn ethanol producer similar in scale, technology, and regional footprint. Highly comparable single-plant operation competing for the same local corn supply and serving the same petroleum marketer channel.
• Ring Neck Energy & Feed: South Dakota-based dry-grind ethanol plant of similar capacity to HLB. Comparable single-asset producer competing on similar feedstock supply dynamics and DDGS markets.

Direct peers

• Aemetis: Corn ethanol producer (renamed from Pacific Ethanol) with operating plants in the Midwest. Directly comparable dry-grind ethanol producer pursuing adjacent renewable diesel and SAF opportunities, similar capital intensity and regulatory exposure.
• Green Plains Inc. Pure-play corn ethanol producer operating a national network of dry-grind plants with combined capacity of approximately 1.1 billion gallons annually. Closely comparable business model, technology, and product mix (ethanol + DDGS + corn oil).
• CHS Inc. U.S. agricultural cooperative operating corn ethanol plants in Minnesota and the Midwest, with similar feedstock procurement from farmer-members. Closely comparable producer model given Minnesota footprint and farmer-shareholder structure.
• POET Biorefining: Largest U.S. dry-grind corn ethanol producer with ~30 plants nationwide producing billions of gallons annually. Direct competitor using the same dry-grind process and serving the same petroleum marketer and DDGS customer segments; meaningful comparison on operational efficiency at a much larger scale.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat3 records

Key risks6 records

Key highlights7 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles9 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Heron Lake BioEnergy