April 23, 2007
VeraSun may become largest ethanol producer in the US
VeraSun Energy Corporation may become largest ethanol producer in the US as it boosts its production capacity by about a third with the early opening of its third biorefinery in Charles City, Iowa.
The plant is expected to produce 110 million gallons of ethanol each year using more than 39 million bushels of corn. VeraSun will also produce 350,000 tonnes of dried distillers' grains (DDGS) as a byproduct of the ethanol process.
The Charles City opening, nearly three months ahead of schedule, boosts the company's production capacity to about 340 million gallons per year.
VeraSun has two additional plants under construction in Hartley, Iowa and Welcome, Minnesota , which will increase its annual capacity to about 560 million gallons. The company has chosen Reynolds, Indiana, as the site for its next biorefinery.
All of VeraSun's plants produce dried distillers grains but the company eventually plans to extract oil from the grains to also produce biodiesel.
This will give a double benefit for VeraSun as it improves the value of its distillers grain while producing the grain. DDGS, because of its fat content, can only be fed to a certain level to livestock and removing its fat--which is intended for biodiesel--livestock and dairy producers will be able to increase the volume fed per animal to obtain a better value for protein feedstock.
VeraSun has had success drawing out oil in small- and large-scale tests and will begin construction of its first extraction facility next to its Aurora plant this year with completion in 2008. The company plans similar projects at its other biorefineries.
With six plants up and running VeraSun will require around 240,000 bushels of corn and produce more than 2 million tonnes of DDGS.
A spokesman for the company said the planned additional acreage for corn this year will more than satisfy growing demand for ethanol, but VeraSun is also examining ways to use plant waste such as corn stalks to convert the cellulose into ethanol.
