BioUrja claims they're owed more than $27 million after the manufacturer of Purell hand sanitizer reneged on an agreement to purchase some 14.7 million gallons of ethanol produced in Peoria.
In a complaint filed in federal court in the Central District of Illinois last September, BioUrja says Purell producer Gojo Industries entered into a contract to purchase 190 proof ethanol from the Peoria plant's previous owner, Vantage Corn Producers, in June 2020. BioUrja bought the plant in November 2021 and says they inherited the contract.
The 190 proof ethanol is a key component of hand sanitizer. The Wall Street Journal reported hand sanitizer sales jumped 600% in 2020 during the COVID-19 pandemic. Reuters reports hand sanitizer sales began to drop off as the pandemic subsided.
BioUrja alleges Gojo stopped buying ethanol in December 2021, after purchasing a little more than 1.5 million gallons in 55 shipments. The company says it's owed $27.1 million after a 1% price increase and 1.5% per month in interest outlined in the contract in the event of a default are factored in.
In a response filed in February, Gojo denies the allegations. Among other arguments, the company says it acted in good faith, and that any contract requiring them to purchase ethanol from BioUrja was terminated by mutual agreement. They also argue BioUrja didn't suffer damages in the alleged scenario, or alternatively failed to mitigate potential damages.
A scheduling conference is set for March 15.
