VeraSun Energy — BrandWiki

VeraSun Energy Corporation was a leading producer of renewable fuel. 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 e9USgal of ethanol and more than 5 million tons of distillers grains by the end of 2008. The company also had begun construction at its Aurora, South Dakota facility to extract oil from dried distillers grains, a co-product of the ethanol process, for use in biodiesel production.

VeraSun marketed E85, a blend of 85 percent ethanol and 15 percent gasoline for use in Flexible fuel vehicles (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 Washington, D.C.

History

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.

The company has been credited for a number of "industry firsts" – the first 100 e6USgal-per-year dry-grind production facility, the country's first branded E85, VE85; the first ethanol producer to form strategic alliances with Ford Motor Company, General Motors, Enterprise Rent-A-Car and Kroger to increase awareness and availability of E85, and the first company to place an E85 retail station in the Washington D.C. metro area.

VeraSun began producing ethanol in December 2003 when its Aurora, S.D., production facility came on-line. Less than two years later, Fort Dodge, Iowa, became the second facility of the company to begin production, increasing the company's production capacity to more than 200 e6USgal per year. Not stopping with two facilities, VeraSun began other greenfield site developments in Iowa at Charles City and Hartley, in addition to a third location in Welcome, Minnesota. A fourth greenfield location was under development and halted prior to construction in Reynolds, Indiana – also referred to as BioTown USA. VeraSun Charles City began operation in April 2007, three months ahead of schedule.

On June 14, 2006, VeraSun became the first "pure play" ethanol producer to take its stock public when it listed on the New York Stock Exchange (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 e6USgal per year production facilities from ASAlliances Biofuels, LLC. The facilities, located in Linden, Indiana; Albion, Nebraska, and Bloomingburg, Ohio, doubled the company's production capacity to more than 650 e6USgal per year.

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 e9USgal per year. The merger 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.

Less than a year later, VeraSun filed for bankruptcy.

Biorefinery locations

VeraSun Energy had a fleet of 16 production facilities in eight states. They are listed below in alphabetical order.

Albert City, Iowa Capacity: 110 e6USgal per year Start-Up: December 2006

Albion, Nebraska Capacity: 110 e6USgal per year Start-Up: October 2007

Aurora, South Dakota

Capacity: 120 e6USgal per year

Start-Up: December 2003

Bloomingburg, Ohio