VeraSun starts up new ethanol plant

Brookings, S.D.-based VeraSun Energy (NYSE: VSE) has started operations at a new ethanol plant in Iowa, bringing the company's annual production capacity to more than 1.4 billion gallons.

The new facility, located in Dyersville, is VeraSun's fourteenth biorefinery in operation and has a capacity of 110 million gallons per year.

"The state continues to be a leader in renewable fuels production, helping our nation to reduce our dependence on foreign oil," said Don Endres, CEO of VeraSun.

"We commend the Dyersville community, its leadership, and the local corn producers for making this day a reality."

Construction on the 200 acre site started in October 2006. The biorefinery will process about 39 million bushels of corn per year and produce about 350,000 tons of distillers grains for livestock feed, employing 55 workers to run the plant.

VeraSun took ownership of the plant on April 1, following its merger with St. Paul, Minn.'s US BioEnergy. The company announced its plans to aquire US BioEnergy last November (see VeraSun to buy US BioEnergy).

Under the all-stock deal, VeraSun said it would issue 0.81 shares of VeraSun common stock for each outstanding US BioEnergy share.

The Dyersville facility is VeraSun's fifth production facility in Iowa, joining 110 million gallon per year biorefineries in Albert City, Charles City, Fort Dodge, and Hartley.

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