Grains and biofuels marketer CHS has bought Patriot Renewable Fuels’ Illinois ethanol plant, its second such purchase in a year, to boost its footprint in ethanol at a time of high inventories and low margins.

The purchase of the medium-sized, 125 million-gallon-a-year plant in Annawan, Illinois, is intended to boost margins for value-added products and is a long-term bet on ethanol, said Gary Anderson, CHS senior vice president of grain marketing and renewable fuels in North America.

“It’s about adding value to a bushel of corn,” Anderson said in a phone interview. “The ethanol industry is going to continue to evolve and consolidate over time.”

The deal to buy the plant, partly owned by Rex American Resources, was valued at $196 million in a recent public filing.

CHS, a St Paul, Minnesota-based cooperative, bought its first ethanol plant, a 133 million-gallon facility in Rochelle, Illinois, last year, according to a company statement. CHS is one of the largest merchandisers of distillers’ grains.