Greg Lamp

January 1, 2010

1 Min Read

Valero Energy is beefing up its ethanol presence, purchasing three more plants — including two more facilities — for a collective $272 million, according to the Oil Price Information Service (OPIS).

Valero Renewable Fuels Company signed an agreement with ASA Ethanol Holdings to purchase two former VeraSun ethanol plants — one in Linden, IN, and another in Bloomingburg, OH — each with a 110-million-gallon/year capacity, for $200 million.

Also, Valero received approval from a bankruptcy court to acquire Renew Energy's 110-million-gallon/year ethanol facility located near Jefferson, WI, for $72 million following a bankruptcy auction held last month.

The plants will be purchased for approximately 41% of their estimated replacement cost, Valero says.

These acquisitions expand Valero's ethanol production capacity to 1.1 billion gallons/year. Valero acquired seven ethanol plants formerly owned by VeraSun earlier this year for a collective $477 million.

About the Author(s)

Greg Lamp

Greg grew up on a diversified crop and cattle operation in South Dakota, and has 22 years of experience covering the farming and livestock business. A graduate of South Dakota State University, he served as managing editor of BEEF magazine for five years, previously working for Farm Journal, Successful Farming and Feedlot Management magazines, as well as having served as an account executive with the Colle&McVoy advertising agency. Greg is the recipient of numerous writing and photography honors.

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