Published:
VeraSun Energy Delays Startup of Hankinson, North Dakota, Biorefinery
BROOKINGS, S.D., June 25 /PRNewswire-FirstCall/ -- VeraSun Energy Corp.
(NYSE: VSE), one of the nation's largest ethanol producers, today announced
that it will delay the startup of its 110 million-gallon-per-year (MMGY)
ethanol production facility inHankinson, N.D. TheHankinson biorefinery marks
the third VeraSun facility that has delayed startup operations this month due
to market conditions, joining other 110MMGY plants inWelcome, Minn., and
Hartley, Iowa.
"Given the current volatility in the market, we believe that delaying all
three of these startups is the prudent decision for the long-term benefit of
our company and shareholders," said VeraSun CEO Don Endres. "Ethanol is
currently being sold at a deep discount to unleaded gasoline, which has caused
us to delay the start-up of these facilities until the outlook for ethanol
selling prices and overall margins improve."
Construction on theHankinson facility will be completed by the end of
June, while construction on theHartley andWelcome biorefineries was
completed earlier this month.
"With oil prices hovering around record levels, there is a tremendous
urgency for domestically produced fuel options in our country," Endres said.
"Ethanol is a solution that is available today and will continue to have a
strategic impact on diversifying our energy needs."
About VeraSun Energy Corporation
VeraSun Energy Corporation (NYSE: VSE), headquartered inBrookings, S.D.,
is a leading producer of renewable fuel. Founded in 2001, the company has more
than 1.3 billion gallons of annual ethanol production capacity through 14
biorefineries. Three additional facilities are currently either under
construction or development with a combined capacity of 330 million gallons.
Upon completion of the new facilities, VeraSun Energy will have an annual
production capacity of approximately 1.75 billion gallons. Recently, the
company began construction at its Aurora facility that will allow it to
extract oil from dried distillers grains.
VeraSun 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(R). For more information, please visit VeraSun Energy's websites at
http:/www.verasun.com or http://www.VE85.com.
Forward-Looking Statements
We have included or incorporated by reference in this press release
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements are based upon the current
beliefs and expectations of the management of VeraSun, are subject to risks
and uncertainties outside of our control, and actual results might differ
materially from these statements. VeraSun is not under any obligation, and
expressly disclaims any obligation, to update, alter or otherwise revise any
forward-looking statement, whether written or oral, that may be made from time
to time, whether as a result of new information, future events or otherwise.
Some of the factors that may cause actual results, developments and
business decisions to differ materially from those described in any
forward-looking statements include the volatility and uncertainty of corn,
natural gas, ethanol and unleaded gasoline prices; the results of our merger
with US BioEnergy; our ability to develop an oil extraction business; the
results of our recently acquired facilities; the results of our hedging
transactions and other risk mitigation strategies; operational disruptions at
our facilities; our ability to implement our expansion strategy as planned or
at all; our ability to locate and integrate potential future acquisitions;
development of infrastructure related to the sale and distribution of ethanol;
excess production capacity in our industry; our ability to compete effectively
in our industry; changes in or elimination of governmental laws, tariffs,
trade or other controls or enforcement practices; environmental, health and
safety laws, regulations and liabilities; our reliance on key management
personnel; future technological advances; limitations and restrictions
contained in the instruments and agreements governing our indebtedness; our
ability to raise additional capital and secure additional financing; and costs
of construction and equipment, as more fully described in the "Risk Factors"
sections of our annual report on Form 10-K for the year ended December 31,
2007 and our quarterly report on Form 10-Q for the quarter ended March 31,
2008.
SOURCE VeraSun Energy Corp.
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