June 18, 2008

High corn prices cause VeraSun to postpone opening of ethanol plant

VeraSun Energy Co. (VSE) is delaying the opening of a new ethanol plant in Minnesota because of high corn prices, a Minnesota paper reports.

The plant in Welcome was supposed to begin operations this month, but a VeraSun spokesman says the company will wait until market conditions are more favorable, reports the Fairmont Sentinel on its Web site.

The facility is one of the largest ethanol plants in the nation, built to turn 39 million bushels of corn a year into 110 million gallons of ethanol. VeraSun is also delaying the opening of another plant, in Hartley, Iowa.

Verasun is one of the largest ethanol producers in the US.