VeraSun Energy delays two plants in Minnesota and Iowa, cites financial conditions

In South Dakota, VeraSun Energy said that it would delay the opening of two plants under construction in Welcome, Minnesota and Hartley, Iowa. The company said that it would continue construction on three plants, citing financial conditions for the delay. ICM president David Vander Griend commented “The best plant to shut down is one you haven’t started yet. With ethanol priced $1 a gallon below gasoline on the rack and corn futures hitting $7.50 today, the numbers just aren’t there.”

VeraSun Energy background

Following completion of its merger with US BioEnergy, VeraSun has been on a spree of plant completions and openings in 2008. In Nebraska earlier this month, VeraSun Energy officially opened its 100 Mgy corn ethanol plant in Albion. The $200 million plant is credited with sparking a boomlet in local real estate, according to Boone County authorities. In North Dakota, the company said that its 100 Mgy corn ethanol plant in Hankinson will commence production this month. The plant was originally a US BioEnergy project, but became a VeraSun plant when the two companies merged earlier this year.

In April, the company had crossed the 1 billion gallon mark with when its 110 Mgy facility in Bloomingburg commenced production. It was the 11th VeraSun facility and the fourth ethanol plant in Ohio. Total production at this time is estimated at 1.2 Bgy following the opening of the Hankinson plant.

The company had predicted the completion of construction at its 110 Mgy corn ethanol plant at Hartley by the end of June. Construction commenced in November 2006.

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