Brookings, S.D.-based VeraSun Energy (NYSE: VSE) announced today that it would delay the startup of its 110 million gallon per year ethanol production facility in Hankinson, N.D., marking the third VeraSun facility that has delayed startup operations this month due to market conditions.

The company said the Hankinson facility joins the 110 million gallon per year plants in Welcome, Minn., and Hartley, Iowa, on the list of delayed startups.

"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 Don Endres, CEO of VeraSun.

"Ethanol is currently being sold at a deep discount to unleaded gasoline, which has caused us to delay the startup of these facilities until the outlook for ethanol selling prices and overall margins improve."

VeraSun said construction on the Hankinson facility would be completed by the end of June, while work on the Welcome and Hartley biorefineries was completed earlier this month.

The company said it has more than 1.3 billion gallons of annual ethanol production capacity through 14 biorefineries.

Upon completion of the new facilities, VeraSun will have an annual production capacity of approximately 1.75 billion gallons.

The company also said it recently started construction at its Aurora, S.D., facility that would allow it to extract oil from dried distillers grains.