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this discounted level then VeraSun was required to take in twice as much as it was normally contracted to. This results in VeraSun taking twice as much grain as they need at a higher price than if they bought on the open market. More over, these accumulators typically have a stipulation where if the price of corn were to rise too high relative to the discounted level then the contract would knock out and no longer be in effect. Every week these conditions are checked and the appropriate amount of corn is purchased by VeraSun at the appropriate price. What happened to
Verasun was that the price of corn fell drastically causing them to buy twice as much corn as they need at what was then a relatively high price. On top of this the price of ethanol fell as well, this caused their crushing margin to go negative.
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223:(NYSE). The public listing was the first of several major announcements for the company over the next 18 months. In July 2007, VeraSun announced the first major acquisition in the industry when the company purchased three 110 million US gallons (420,000 m) per year production facilities from
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VeraSun's second major acquisition came less than five months later when it was announced that VeraSun and US BioEnergy would merge, creating a company with 16 biorefineries and a production capacity by the end of 2008 of more than 1.6 billion US gallons (6,100,000 m) per year. The merger
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VeraSun's financial difficulties were the result of the company hedging its corn consumption with an OTC derivative known as an accumulator. The derivative contract works as such: VeraSun locks in their procurement of corn at a discount to current market prices. However, if the market moves below
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was a leading producer of renewable fuel. Founded in 2001, the company at one time had a fleet of 16 production facilities in eight states, of which one was still under construction. VeraSun Energy was scheduled to have an annual production capacity of approximately 1.64 billion US gallons
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VeraSun Energy was founded in 2001 with the goal of providing a renewable, home-grown energy source while boosting domestic rural economy and creating a future that includes renewable energy to help benefit the environment and reduce the nation's demand for foreign oil.
192:, became the second VeraSun facility to begin production, increasing the company's production capacity to more than 200 million US gallons (760,000 m) per year. Not stopping with two facilities, VeraSun began other greenfield site developments in Iowa at
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The company has been credited for a number of "industry firsts" – the first 100-million-US-gallon (380,000 m)-per-year dry-grind production facility, the country's first branded E85, VE85; the first ethanol producer to form strategic alliances with
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153:(FFVs), directly to fuel retailers under the brand VE85. VeraSun Energy at one time had approximately 150 VE85 retail locations under contract in more than fifteen states and
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closed on April 1, 2008 and VeraSun was positioned as the largest ethanol producer in the United States with plants located in eight different states.
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bankruptcy protection to enhance liquidity while it reorganizes. The Sioux Falls-based company says the move was voluntary in order to maintain
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to increase awareness and availability of E85, and the first company to place an E85 retail station in the
Washington D.C. metro area.
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VeraSun began producing ethanol in
December 2003 when its Aurora, S.D., production facility came on-line. Less than two years later,
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212:– also referred to as BioTown USA. VeraSun Charles City began operation in April 2007, three months ahead of schedule.
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VeraSun Energy had a fleet of 16 production facilities in eight states. They are listed below in alphabetical order.
246:, doubled the company's production capacity to more than 650 million US gallons (2,500,000 m) per year .
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facility to extract oil from dried distillers grains, a co-product of the ethanol process, for use in
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says he is hopeful VeraSun Energy will emerge a stronger company after the chapter 11 filing.
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location was under development and halted prior to construction in
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by the end of 2008. The company also had begun construction at its
219:" ethanol producer to take its stock public when it listed on the
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Capacity: 110 million US gallons (420,000 m) per year
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Capacity: 110 million US gallons (420,000 m) per year
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Capacity: 110 million US gallons (420,000 m) per year
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Capacity: 110 million US gallons (420,000 m) per year
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Capacity: 110 million US gallons (420,000 m) per year
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Capacity: 110 million US gallons (420,000 m) per year
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Capacity: 110 million US gallons (420,000 m) per year
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Capacity: 110 million US gallons (420,000 m) per year
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Capacity: 110 million US gallons (420,000 m) per year
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Capacity: 100 million US gallons (380,000 m) per year
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Capacity: 110 million US gallons (420,000 m) per year
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Capacity: 120 million US gallons (450,000 m) per year
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Capacity: 110 million US gallons (420,000 m) per year
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Capacity: 110 million US gallons (420,000 m) per year
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The
Woodbury plant was sold in May, 2009 to Carbon Green LLC.
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Capacity: 50 million US gallons (190,000 m) per year
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Capacity: 50 million US gallons (190,000 m) per year
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122:(6,200,000 m) of ethanol and more than 5 million tons of
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529:"VeraSun bankruptcy hitting Minnesota farmers in the wallet"
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Companies formerly listed on the New York Stock
Exchange
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Companies that filed for
Chapter 11 bankruptcy in 2008
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Less than a year later, VeraSun filed for bankruptcy.
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http://biz.yahoo.com/prnews/081031/laf081.html?.v=1
46:. Unsourced material may be challenged and removed.
550:"Oil refiner to obtain 7 VeraSun ethanol plants"
509:Ethanol Future Bright Despite VeraSun Bankruptcy
434:VeraSun ended up selling seven of the plants to
145:, a blend of 85 percent ethanol and 15 percent
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597:Companies based in Sioux Falls, South Dakota
215:On June 14, 2006, VeraSun became the first "
438:, and the rest to other companies in 2009.
106:Learn how and when to remove this message
602:Defunct companies based in South Dakota
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627:2009 disestablishments in South Dakota
607:Energy companies of the United States
200:, in addition to a third location in
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44:adding citations to reliable sources
622:2001 establishments in South Dakota
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396:Construction Complete: June 2008
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31:needs additional citations for
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234:. The facilities, located in
360:Projected Start-Up: Q4 2008
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119:VeraSun Energy Corporation
436:Valero Energy Corporation
324:Start-Up: September 2008
225:ASAlliances Biofuels, LLC
405:Start-Up: September 2006
378:Start-Up: February 2008
288:Start-Up: December 2003
270:Start-Up: December 2006
423:. South Dakota Senator
337:Hankinson, North Dakota
333:Start-Up: October 2005
279:Start-Up: October 2007
221:New York Stock Exchange
592:Alcohol fuel producers
369:Start-Up: August 2007
351:Start-Up: August 2008
301:Central City, Nebraska
151:Flexible fuel vehicles
514:May 23, 2011, at the
461:on September 19, 2010
355:Janesville, Minnesota
315:Start-Up: April 2007
306:Start-Up: April 2004
297:Start-Up: March 2008
257:Biorefinery locations
179:Enterprise Rent-A-Car
572:VeraSun Energy Corp.
373:Marion, South Dakota
342:Start-Up: July 2008
283:Aurora, South Dakota
40:improve this article
387:Start-Up: May 2007
485:carbongreenllc.com
400:Woodbury, Michigan
391:Welcome, Minnesota
310:Charles City, Iowa
292:Bloomingburg, Ohio
244:Bloomingburg, Ohio
230:2008-04-09 at the
202:Welcome, Minnesota
171:Ford Motor Company
421:business as usual
265:Albert City, Iowa
210:Reynolds, Indiana
141:VeraSun marketed
124:distillers grains
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155:Washington, D.C.
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33:verification
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204:. A fourth
149:for use in
586:Categories
555:2016-12-07
534:2016-12-07
442:References
425:John Thune
417:Chapter 11
411:Bankruptcy
206:greenfield
66:newspapers
465:March 11,
217:pure play
136:biodiesel
512:Archived
228:Archived
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198:Hartley
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