VeraSun Energy Corp. began producing fuel-grade ethanol in Charles City, Iowa, in April. A 110 MMgy facility coming on line in Iowa wasn't exactly a "stop the presses" moment by the spring of 2007, but VeraSun's third operating plant solidified the company's status as the No. 3 ethanol producer in the United States with 340 MMgy of capacity.

On Aug. 17, more than 3,000 people attended the plant's grand opening, including keynote speaker and presidential candidate U.S. Sen. Barack Obama; Renewable Fuels Association President and CEO Bob Dinneen; National Corn Growers Association CEO Rick Tolman; and VeraSun Energy Chairman, CEO and President Don Endres.

Obama's presence garnered much media attention. He signaled his intent to continue fighting for renewable fuels in Washington, D.C.—no matter what office he holds—and he stressed the importance of ethanol in the equation. "This is truly a celebration," he told the crowd. "By opening this plant, we're taking an important step toward solving our energy crisis and bringing about a renewable energy future. We know that our energy crisis is not some problem we can deal with later or wait for someone else to solve. It's an urgent moral challenge, and it demands action now."

He added, "I've proposed a comprehensive plan to meet this challenge. One part of that plan has to be ethanol."

Although recent market conditions have narrowed profit margins for corn-to-ethanol plants, Kurt Swenson, vice president of plant operations at VeraSun, says the company plans to run the Charlies City facility at its full 110 MMgy capacity. The plant's infrastructure can also be retrofitted to produce beverage alcohol if the company decided to move in that direction.

According to Swenson, VeraSun Charles City is considered the sister of the other plants in the company, which were built by Fagen Inc. using ICM Inc. process technology. "Through our relationship with ICM, we have been able to continually improve the process to make ethanol production more efficient," he tells EPM. "VeraSun Charles City is a third-generation facility within our fleet and is utilizing the most recent technology available in the industry." Construction of the project began in May 2006.

Situated near U.S. Highway 18 in the heart of the Corn Belt, the plant has an abundant feedstock supply. It is accessible by the Iowa, Chicago & Eastern Railroad, which gives it direct access to all Class I railroads traveling to both coasts. The facility's local workforce of 60 will process 39 million bushels of corn into ethanol and produce 350,000 tons of distillers dried grains with solubles (DDGS) annually. VeraSun Energy markets its own DDGS, along with the plant's branded E85, called VE85.

"The Charles City community and the communities of Floyd County have been extremely supportive of the facility and recognize the economic impact it has already made in the area," Swenson says. The town already had a history with agricultural innovation and local economic impact that dated back a century before VeraSun's arrival. In 1907, one-third of all the tractors in the world were manufactured there. "This area did so much for agriculture many, many years ago," Endres told ceremony attendees. "Even though the last tractor was produced here in 1988, Charles City is responsible for really shaping American agriculture. We're very proud to be partners with this community."

When VeraSun Energy first considered the plot of land west of town, it encountered other companies with similar ideas. "We had some competition from other ethanol producers when [VeraSun was] interested in siting its plant," says Tim Fox, executive director of Charles City Area Development Corp. (CCADC). However, VeraSun didn't campaign against the competition, nor deviate from its plan, he says. In the end, VeraSun was the company that came out on top.

As the project developed, it garnered much public discussion and debate within the community. "There was a small minority that was very vocal and labeled the company ‘carpetbaggers,'" Fox says. "Their take was that VeraSun was not going to provide as much benefit as a [farmer]-owned operation. We offered the same property and the same deal to everyone, and [VeraSun was] the first to move. [Company representatives] said, ‘We're going to pay our fair share, and we're going to pay a fair price for commodities, land and infrastructure'—and that's been the case."

The CCADC estimates the annual regional economic impact of VeraSun Charles City at approximately $360 million. Considering Charles City's population is 7,800 and Floyd County's is 16,900, that's a big economic footprint. The influx of professionals to the rural community was also a positive.

Whatever the impact, VeraSun Energy will make sure it's a big one. "I'm convinced we can do a lot more," Endres said at the ceremony. "I think we're very early in this industry. I think we've just scratched the surface. We can do so much more, not only within the plant but also within the farming industry."

Web exclusive:
Audio from VeraSun Charles City's grand opening

VERASUN CHARLES CITY LLC

LOCATION: Charles City, Iowa
DESIGN/BUILDER: Fagen Inc.
PROCESS TECHNOLOGY: ICM Inc.
CAPACITY: 110 MMgy
FEEDSTOCK: corn
ETHANOL MARKETER: VeraSun Energy Corp.
DISTILLERS GRAINS MARKETER: VeraSun Energy Corp.
CARBON DIOXIDE MARKETER: N/A
BROKE GROUND: May 2006
START-UP DATE: April 2007