U.S. BioEnergy opens South Dakota plant
March 10, 2008
BY Sarah Smith
Web exclusive posted March 21, 2008 at 3:50 p.m. CST
U.S. BioEnergy Corp. is creeping up on the total ethanol output leader board.
The St. Paul, Minn. -based company announced March 11 that its newest plant near Marion, S.D., began operating in February. U.S. Bio obtained the 110 MMgy facility, its corn supply and 900 shareholders through a merger with Millenium Ethanol in 2007 while the plant was under construction. During the merger, U.S. Bio announced it would borrow up to $95 million to complete construction.
The plant also has the capacity to produce 320,000 gallons of distillers dried grains annually. "We are excited to have our fifth plant operating," said U.S. Bio Chief Executive Officer Gordon Ommen. "U.S. Bio Marion provides domestically produced biofuel from locally grown corn, which not only reduces our country's dependence on foreign oil, but also benefits the local economy." The company's announcement came as crude oil prices rose to a record $110 per barrel.
U.S. Bio operates four other plants in Iowa, Nebraska and Michigan. It also has three additional plants under construction in North Dakota, Minnesota and Iowa. Upon completion, all eight plants are expected to have a total production capacity of 730 MMgy.
In November, U.S. Bio announced a merger with VeraSun Energy Corp., which is in progress. Once completed, the companies' headquarters will be in Sioux Falls, S.D., and both companies will be under the VeraSun name. The merger announcement predicted that by the end of 2008, the companies will have an annual production capacity of 1.6 billion gallons, "assuming construction resumes in 2008, which will depend on market conditions," Ommen said.
U.S. BioEnergy Corp. is creeping up on the total ethanol output leader board.
The St. Paul, Minn. -based company announced March 11 that its newest plant near Marion, S.D., began operating in February. U.S. Bio obtained the 110 MMgy facility, its corn supply and 900 shareholders through a merger with Millenium Ethanol in 2007 while the plant was under construction. During the merger, U.S. Bio announced it would borrow up to $95 million to complete construction.
The plant also has the capacity to produce 320,000 gallons of distillers dried grains annually. "We are excited to have our fifth plant operating," said U.S. Bio Chief Executive Officer Gordon Ommen. "U.S. Bio Marion provides domestically produced biofuel from locally grown corn, which not only reduces our country's dependence on foreign oil, but also benefits the local economy." The company's announcement came as crude oil prices rose to a record $110 per barrel.
U.S. Bio operates four other plants in Iowa, Nebraska and Michigan. It also has three additional plants under construction in North Dakota, Minnesota and Iowa. Upon completion, all eight plants are expected to have a total production capacity of 730 MMgy.
In November, U.S. Bio announced a merger with VeraSun Energy Corp., which is in progress. Once completed, the companies' headquarters will be in Sioux Falls, S.D., and both companies will be under the VeraSun name. The merger announcement predicted that by the end of 2008, the companies will have an annual production capacity of 1.6 billion gallons, "assuming construction resumes in 2008, which will depend on market conditions," Ommen said.
Advertisement
Advertisement
Upcoming Events
