Ethanol Maker Delays 2 Midwest Plant Openings

By Phyllis Jacobs Griekspoor, The Wichita Eagle, Kan.

Jun. 15–VeraSun, one of the nation’s major operators of ethanol plants, has delayed the opening of two plants, saying market conditions are to blame.

VeraSun, based in Brookings, S.D., operates 11 ethanol plants in eight Midwestern states and was planning to open five more before the end of the year. That included plants in Welcome, Minn., and Hartley, Iowa, where production has been put on hold.

VeraSun spokesman Michael Lockrem said Friday that the company will continue construction on its three remaining start-up plants and will monitor market conditions on a daily basis.

“We remain confident that the industry will turn around, and when conditions become more favorable, we will begin production,” he said.

Colwich-based ICM was the designer on the delayed plants. ICM president David Vander Griend said he expects more plant start-ups to be put on hold.

“The best plant to shut down is one you haven’t started yet,” he said. “With ethanol priced $1 a gallon below gasoline on the rack and corn futures hitting $7.50 today, the numbers just aren’t there.”

The VeraSun pullback comes as the nation’s ethanol industry heads to two major expositions this week: the National BioScience Expo in San Diego and the International Ethanol Fuel Workshop in Nashville, Tenn.

Reach P.J. Griekspoor at 316-268-6660 or pgriekspoor@wichitaeagle.com.

—–

To see more of The Wichita Eagle, or to subscribe to the newspaper, go to http://www.kansas.com.

Copyright (c) 2008, The Wichita Eagle, Kan.

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.