Home › Forums › Refining Community › Refinery News › Valero crosses into ETOH business on Bankrupt VeraSun plants -windfall prices › RE: Valero crosses into ETOH business on Bankrupt VeraSun plants -windfall prices
Here is update on bankrupt ETOH business & Valero making smart move at bottom market before democratic Congress wakes up & floods ETOH with lots subsidy to keep their higher blend mandate on track. The market is not going to find enough ETOH this year to meet higher gasoline blending programs because of all bankrupt plants & because price of corn is below price it takes to make a return to large industrial farmers – the government as usual when it gets involved in free markets – is totally asleep at the switch on one of their favorite programs that is rapidly going under.
Valero is going to pick up 5 still operating ETOH plants from VeraSun for $280MM or $0.25-33 per $1.0-1.5 invested cost.
It is smart move and will head off future cost ……… providing they find corn/switchgrass/sugar cane/feedstock to make the ETOH.