Grainnet

New York, NY--Carlyle/Riverstone Renewable Energy Infrastructure Fund I, L.P. ("CRREIF"), announced June 26, 2006 it plans to build a 105 million-gallon-per-year ethanol plant in Clovis, NM.

The plant will be constructed on ConAgra Trade Group's Peavey grain elevator property.

ConAgra Trade Group is the commodity trading arm of ConAgra Foods, Inc.

Construction is expected to start in October 2006, with production expected to come online in late 2007.

"We believe the renewable fuels segment of the energy industry is just beginning to grow and are excited to partner our capital and energy expertise with a company of ConAgra Trade Group's breadth in the agricultural industry," said Michael Hoffman, managing director of Riverstone.

The plant is expected to create 55 jobs at the plant as well as additional 50-75 indirect jobs in service of the plant.

Construction-related jobs are expected to employ about 300 people.

Once it comes on line, the plant will more than triple New Mexico's ethanol output.

New Mexico's only other ethanol plant, Abengoa in Portales, currently produces 30 million gallons annually.

"I am committed to making New Mexico the Clean Energy State and this ethanol plant is another major step in the right direction," said Bill Richardson, governor of New Mexico.

"By promoting American-made fuel,like ethanol, we show that we can help the local economy, combat climate change and keep the country safer."

ConAgra Trade Group, a minority partner in the venture, will supply corn and energy inputs for the plant, market and distribute the plant's outputs, including ethanol and distillers grains, and provide logistics and risk management services.

"We are very pleased to join CRREIF to make this ethanol plant a reality," said Martin Higgins, executive vice president for business strategies, ConAgra Trade Group.

"Given our expertise in agricultural and energy commodities and related services, as well as our extensive grain handling and processing capabilities, we believe we are uniquely positioned to add value in the renewable energy sector."

Pennsylvania-based New Hope Partners, LLC is assisting CRREIF and ConAgra Trade Group to develop the project. For more information, call Marti DeMoss, ConAgra Foods, 402-595-5783,or Kelly Gordon, Ketchum, 312-288-6991.

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