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Posts tagged “verasun”

By Robert Rapier on Mar 19, 2009 with no responses

Valero Now in the Ethanol Business

In an update to Big Oil Buys Big Ethanol, it is official: Valero Energy, the Oil Refiner, Wins an Auction for 7 Ethanol Plants Valero Energy, the country’s largest independent refiner, said on Wednesday that it would buy seven ethanol plants from VeraSun Energy for $477 million, giving the biofuel industry a lift at a time when it is suffering from excess production capacity and falling gasoline consumption. VeraSun, the nation’s second-largest ethanol producer after Archer Daniels Midland, filed for Chapter 11 bankruptcy protection last fall. Valero’s purchase signals important new support for a flagging industry from an unexpected quarter. In recent years, refiners have opposed Congressional mandates for refineries to blend increasing amounts of ethanol in gasoline, arguing that… Continue»

By Robert Rapier on Feb 7, 2009 with no responses

Big Oil Buys Big Ethanol

Some people think that the oil industry is hostile toward the ethanol industry because they consider them a real threat. But I always point out that the oil industry dwarfs the ethanol industry by such a large amount that it could easily buy up all the available assets of the ethanol industry – if they thought there was a good business opportunity. My speculation has turned into reality as an announcement was just released that major oil refiner Valero is buying up the assets of bankrupt ethanol producer VeraSun: VeraSun Energy to sell assets to Valero Energy Ethanol producer VeraSun Energy Corp. said Friday it is selling assets to Valero Energy Corp. for $280 million amid difficult industry conditions and… Continue»

By Robert Rapier on Jan 10, 2009 with 5 responses

More Ethanol Plants Going Down

I won’t say I told you so, but I will make a prediction here: VeraSun Suspends Production at Three Distilleries Jan. 9 (Bloomberg) — VeraSun Energy Corp., the second- largest U.S. ethanol producer, has idled three distilleries as demand falls and prices fail to cover the cost of production. Producers have been struggling to make profits amid fluctuations in corn prices. Pacific Ethanol Inc. today said it will suspend output at its plant in Madera, California. On Jan. 7, Aventine Renewable Holdings Inc. said it halted construction of its refinery in Aurora, Nebraska, for up to 180 days. Vinod Khosla hasn’t been immune: Last month, AltraBiofuels Inc., which counts venture capitalist Vinod Khosla among its investors, shut production at its… Continue»