Valero Renewables to Acquire Three Ethanol Plants
Dec 18th, 2009US chemicals firm Valero Renewable Fuels said it will acquire three ethanol plants, for roughly 41% of their estimated replacement cost.
Valero will buy VeraSun’s Linden and Bloomingburg ethanol plants, each with an annual production capacity of 110 million gallons, at a cost of $200m.
Valero will also acquire Renew Energy’s 110 million g/y ethanol facility located near Jefferson, at a cost of $72m.
Valero’s ethanol production capacity will increase to 1.1 billion g/y with these three acquisitions, the company said.
The Linden and Bloomingburg plants, which are currently idled, will restart production of dry distillers grains, a co-product of the ethanol production process that is sold as a livestock feed.
The transactions will be complete by the beginning of 2010, following regulatory approvals including termination of the review period under the Hart-Scott-Rodino Act.
Source: chemicals-technology.com