100 Mgy VeraSun plant shuts down abruptly: corn shortage or cash shortage for ethanol giant?
In Indiana, the 100 Mgy VeraSun Energy corn ethanol plant ceased production and has stopped accepting corn deliveries. VeraSun has not announced the reason for the shutdown, and whether it is temporary or premanent. At least one other Midwestern ethanol plant shut down in the past week, due to a temporary shortage of corn due to the late harvest this year.
However, VeraSun has been in cash flow difficulties for several months due to hedging losses, and put itself up for sale in recent weeks. The plant originally opened in July of last year, and was acquired by VeraSun from ASAlliances Biofuels along with two other plants. There are eight other plants in Indiana, three owned by POET, one by The Andersons, and the others by independents.
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