Brookings, S.D.-based VeraSun Energy (NYSE: VSE) opened its fifth ethanol plant today, in Albion, Neb., less than a month after the company killed a similar project in Indiana.

The 110 million gallon per year plant in Nebraska increases the company's overall capacity to 560 million gallons per year.

A glut in the ethanol market led the company to cancel plans for a facility in Reynolds, Ind., which was at an early stage of development.

The company said work on the Reynolds plant could resume in 2008, depending on market conditions.

"This startup is significant because it puts VeraSun at more than 500 million gallons per year of annual capacity and is an indication that our company and the industry are continuing to grow," said Don Endres, chairman and CEO of VeraSun.

"As we bring new facilities online, the ethanol being produced is finding its way into the marketplace and continues to be blended as a value-added, high-octane component to our nation's fuel supply."

The Albion plant is one of three refineries VeraSun purchased from ASAlliances Biofuels in August.

The plant is expected to process 39 million bushels of corn per year and produce about 350,000 tons of distillers grains for livestock feed.

VeraSun has facilities in Aurora, S.D., Fort Dodge and Charles City, Iowa, and Linden, Ind., with another three plants under construction in Hartley, Iowa, Welcome, Minn., and Bloomingburg, Ohio.

Upon completion of the new facilities, as well as the delayed Reynolds plant, VeraSun said it would have an annual production capacity of approximately one billion gallons.