VeraSun Delays Start-up of Minn. Biorefinery
November 05, 2008
VeraSun Energy Corp., one of the nation's largest ethanol producers, on Tuesday announced that it is indefinitely delaying the startup of its 110 million gallon per year (MMGY) ethanol biorefinery in Janesville, Minn. VeraSun will continue operations at its 14 facilities across an eight-state region.
VeraSun filed voluntary petitions for relief under chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court on Friday, Oct. 31 to enhance liquidity while it reorganizes. However, at this time, the secured lender of the plant has not provided the necessary financing to continue construction and startup activities. Efforts to secure financing for Janesville are underway.
Construction on the Janesville facility is nearly completed and the plant was scheduled to begin operations prior to the end of the year. Construction began in January 2007 and ownership of the plant moved under VeraSun on April 1, 2008, following its merger with US BioEnergy. Most of the 53 employees will be furloughed immediately.
VeraSun Energy Corp., headquartered in Sioux Falls, S.D., is a producer and marketer of ethanol and distillers grains. Founded in 2001, the company has a fleet of 16 production facilities in eight states, with 14 currently in operation. VeraSun currently has an annual production capacity of 1.42 billion gallons of ethanol and more than 4.5 million tons of distillers grains. VeraSun also markets E85, a blend of 85 percent ethanol and 15 percent gasoline for use in Flexible Fuel Vehicles (FFVs), directly to fuel retailers under the brand VE85.
Source: VeraSun Energy Corp.
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