Vera Sun building a new plant

[Haldersham]

The energy company headquartered in Brookings is planning a new plant in Northwest Iowa, with the gas prices going up and ethanol and E85 going up due to shortage of ethanol, this plant is good news for everyone.  I think what is most impressive is Wall Streets reaction to Vera Sun going public that as offering their stock to the public. Nearly a half a billion dollars raised. It appears society it finally starting to take alternative fuels seriously.

Here is the link to the story from the Argus update:

http://www.argusleader.com/apps/pbcs...INESS/60804009

[89rabbit]

Re: Vera Sun building a new plant

http://www.argusleader.com/apps/pbcs.../NEWS/70723004

VeraSun buying three ethanol plants

By Associated Press
Published: July 23, 2007

BROOKINGS, S.D. (AP) – Ethanol producer VeraSun Energy Corp. said Monday it is buying three ethanol plants from ASAlliances Biofuels LLC for $725 million.

The acquisition will be funded with $250 million in cash, $200 million of equity and $275 million in project financing.

The facilities have a combined annual production capacity of 330 million gallons per year and are each expected to operate at 110 million gallons per year. VeraSun currently has 340 million gallons per year of production capacity, with another 330 million gallons per year under construction and development. . . . (read more)


Go State!

[JimmyJack]

Re: Vera Sun building a new plant

I think they're planning a new HQ building in Brookings as well. Anybody know more about that?

[Jacks-D1]

Re: Vera Sun building a new plant

Take away the government subsidy and I believe there would be no ethanol; certainly not where it's at right now. The only reason ethanol prices are reasonable is because of the subsidy; without the government subsidy the price of ethanol would be so high no one would buy it. Vera Sun better have some very good lobbyists in Washington and make some major donations to the right politicians.

[Haldersham]

Re: Vera Sun building a new plant

Take away the government subsidy and I believe there would be no ethanol; certainly not where it's at right now.  The only reason ethanol prices are reasonable is because of the subsidy; without the government subsidy the price of ethanol would be so high no one would buy it.  Vera Sun better have some very good lobbyists in Washington and make some major donations to the right politicians.

For starters the SD delegation in Washington totals three people. I think all of them would work towards keeping the subsidy with or without campaign contributions..

There are several talk shows in North Dakota on KFGO that talk about alternive fuels daily, so I feel just about any rural state is on board in establishing markets for altnerative fuels. Also people from the east coast are very curious about E-85 and want to know when this cheaper fuel is available. So its a matter of building the market with knowledge of the products available.  




*Edited for Political Content

[joeboo22]

Re: Vera Sun building a new plant

Take away the government subsidy and I believe there would be no ethanol; certainly not where it's at right now.  The only reason ethanol prices are reasonable is because of the subsidy; without the government subsidy the price of ethanol would be so high no one would buy it.  Vera Sun better have some very good lobbyists in Washington and make some major donations to the right politicians.

First of all your quite wrong on ethanol only being affordable because of subsidies... just like oil the ethanol market is what dictates prices. There isn't as many subsidies as you think with ethanol in South Dakota there is an exemption from the road tax (2%) and under the Energy Policy Act of 2005 (H.R. 6) there is a $.10 per gallon on plants that produce under 60mgpy with a cap of 1.5 million per producer per year. most plants can produce a gallon of ethanol for around $1.50 a gallon thats the break even point after you figure in everything else (all expenses and bi-product sale).

The reason Verasun did this is because they plan on producing bio-diesel from the corn oil they extract they have installed the technology in all of there plants at there current capacity of 350 million the could build a 23 mgpy bio-diesel.. I have heard that they want to get it around 40-50 before they build it. ( I beieve they plan on building it with there plant in Aurora.

[joeboo22]

Re: Vera Sun building a new plant

The energy company headquartered in Brookings is planning a new plant in Northwest Iowa, with the gas prices going up and ethanol and E85 going up due to shortage of ethanol, this plant is good news for everyone.  I think what is most impressive is Wall Streets reaction to Vera Sun going public that as offering their stock to the public. Nearly a half a billion dollars raised. It appears society it finally starting to take alternative fuels seriously.

Here is the link to the story from the Argus update:

http://www.argusleader.com/apps/pbcs...INESS/60804009

The reason E-85 and ethanol prices are up is because big oil is charging more its around $1.85 on the board of trade. Big oil is playing hardball with Ethanol right now but I think in the near future the role will change atleast I hope so.

[Haldersham]

Re: Vera Sun building a new plant

Joe:

Thanks for the input. I believe you are as knowledgeable about alternative fuels if not more than most of us who have been around awhile. I apologize to the moderators for getting political but energy is very poltical as Jack D1 alluded too in his post. Just making a point not questioning the editing. I got carried away with my comments and for that I apologize.

As the price at the pump continues to climb, it bothers me that people in coffee groups and elsewhere are questioning the low miles per gallon for E85 and the effectiveness for ethnol. How much should we allow the oil industry to steal from our pockets? This is also a big potential for grain farmers and they know it. I would have never thought a big mass of steel and steam would be built on the east end of Volga, but as I drove by today there were a que of grain trucks waiting to unload their soybeans that are now selling between 8 and 9 bucks a bushel. So we are just on the dawn of a bright future for alternative fuels. I just dont think Mr Andres is too worried about politicans supporting his product. I think he has plenty of them in his pocket and probably so with no contributions to any campaign.

[89rabbit]

Re: Vera Sun building a new plant

Here is a more detailed story:

http://www.argusleader.com/apps/pbcs...NEWS/707240334

3 ethanol plants to boost VeraSun
CEO: Growth will make firm more efficient

By Kevin Dobbs
kdobbs@argusleader.com
Published: July 24, 2007

VeraSun Energy Corp., already among the nation's largest ethanol producers, on Monday confirmed it will spend $725 million to acquire three more production plants, allowing the company to soon make a billion gallons of the alternative fuel annually.

The acquisition from ASAlliances Biofuels LLC of Texas will be paid for with $250 million in cash, $200 million of equity and $275 million in financing. It will give Brookings-based VeraSun new plants in Albion, Neb.; Bloomingburg, Ohio, and Linden, Ind.

"This is a unique opportunity to acquire immediate production and revenue at a cost similar to that of building new facilities," said Don Endres, VeraSun chairman and chief executive officer. He said the company had spent the past year studying possible acquisitions.

The deal is expected to close within 45 days.

Tom Manuel, ASAlliances Biofuels chief executive, said his company's workers, who will become VeraSun employees, are in good hands. "We believe they are the premier platform company in the renewable fuels industry," he said of VeraSun.

The Linden plant will open this month, followed by the Albion plant before the end of the year and Bloomingburg by early 2008. The three plants will have a combined annual production capacity of 330 million gallons - 110 million each. VeraSun currently has 340 million gallons per year of production capacity. But it also has another 330 million gallons per year under construction and development.

In all, VeraSun's production capacity will hit about 1 billion gallons by the end of 2008.

On Poet's heels

VeraSun, whose flagship plant is in Aurora, will be in position to challenge Sioux Falls-based Poet to be the nation's largest ethanol producer.

Endres said the billion mark - which Poet will hit this fall - is "a benchmark for VeraSun and represents a maturing of the renewable fuels industry."

He said a larger VeraSun can spread production management and distribution responsibilities over more plants and make the company more efficient while continuing to grow and capitalize on the nation's seemingly insatiable demand for alternative fuel.

In addition to Aurora, VeraSun has plants in Fort Dodge and Charles City, Iowa. It has more plants under construction and development in Hartley, Iowa; Welcome, Minn., and Reynolds, Ind. All the plants, company officials said, are located near rail lines that will make it possible for VeraSun to deliver ethanol across the country.  .  .  .  .  (read more)


Go State!  

[SD-STATE]

Re: Vera Sun building a new plant

Has anyone heard that corn based ethanol is the least energy efficient? With sugarcane leading the way for the best ratio of energy to make the ethanol and the amount of potential energy from the end product. (Not sure if what I said made any sense.) Thought I might have saw this on the History channel, my recollection comes and goes these days, when they were discussing the ethanol boom in Brazil with sugarcane.

[Haldersham]

Re: Vera Sun building a new plant

Has anyone heard that corn based ethanol is the least energy efficient? With sugarcane leading the way for the best ratio of energy to make the ethanol and the amount of potential energy from the end product. (Not sure if what I said made any sense.) Thought I might have saw this on the History channel, my recollection comes and goes these days, when they were discussing the ethanol boom in Brazil with sugarcane.

Yes I viewed and read about Brazil's use of sugar cane. It no doubt has worked wonders for Brazil. In the upper midwest, the growing season does not support growing of cane, but the Red River Valley has had sugar beets for decades. I believe there is research going on about sugar beets and ethnol. Corn right now seems to be the logical path, but there are some who claim that there is not a enough corn. This information, which may be factual, has been used by the petroleum industry to argue against ethnol. It makes you wonder who is worried about the future. Its not firms like Vera Sun. I have yet to go buy any of their stock btw.

Laugh as you may, when the name Jimmy Carter is mentioned, but at least he had some vision about energy and what should be done. Its a shame all of his successors were very distracted. I think we are getting to the point that we need to look else where for althernative fuels, be it switch grass, wood chips or anyother material. We are not likely to discover oil in Pukwana SD.

[Grizzled_Jack]

Re: Vera Sun building a new plant

Switchgrass may be a little too warm weather from South Dakota but there's plenty of other tall grasses. That's what was growing in the area before man started planting corn. Does any one know if existing plants can process grasses or are they corn only?

[joeboo22]

Re: Vera Sun building a new plant

Yes you can produce ethanol from sugar cane cheeper then you can produce ethanol from corn but you can still produce ethanol from corn alot cheeper then you can produce ethanol from cellulose atleast right now. With corn to ethanol its all about technology in the 1970's there was alot of small corn to ethanol facilities but the main problem was getting it from 190 proof to 200 proof. Now its how much you can get out of a bushel of corn. Some companies (Poet) can get 3 gallons per bushel but most only get between 2.6 and 2.8. With Sugar Cane it's sugar content there is more sugar per pound of cane then there is per pound of corn also the fact that it is produced in Brazil a country that does not import oil might have something to do with that but I don't know.

[joeboo22]

Re: Vera Sun building a new plant

Switchgrass may be a little too warm weather from South Dakota but there's plenty of other tall grasses.  That's what was growing in the area before man started planting corn.  Does any one know if existing plants can process grasses or are they corn only?

grasses no actually no company has even experemented. most plants are corn some are corn/milo 1 is corn/wheat and a few in canada are wheat. with cellulose most are talking either straw/corn stalks or corn stover. with cellulose instead of breaking down simple sugars they are complex sugars and require pre-treatment and different enzimes the 78 million or so that Poet and other companies recieved was for cellulose and they are spending it for those kinda things.

I hope I answered your ?

[89rabbit]

Re: Vera Sun building a new plant

Here is more info on switchgrass and SDSU research into alt. fuels.


http://www.sdsufans.com/cgi-bin/yabb...num=1115040939


Go State!