Company Begins Production at Eleventh FacilityBROOKINGS, S.D., March 31, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- VeraSun Energy Corp.
(NYSE: VSE), one of the nation's largest ethanol producers, today announced
the startup of its 110 million gallon per year (MMGY) production facility
located near Bloomingburg, Ohio. With the closing of the merger between
VeraSun and US BioEnergy becoming effective April 1, 2008, the Bloomingburg
biorefinery represents the 11th VeraSun facility in operation, pushing the
company's annual operating capacity to more than one billion gallons.
"We are pleased to bring our biorefinery in Bloomingburg online and begin
to produce ethanol in the state of Ohio," said VeraSun CEO Don Endres. "The
startup of this facility is a significant event for the community of
Bloomingburg and a major milestone for VeraSun as our annual operating
capacity exceeds the billion gallon mark. There has been tremendous growth in
the demand for biofuels since the company was founded in 2001. This is a
testament to what is possible when communities, industry and leadership work
together to achieve a goal."
Earlier today, VeraSun announced that it closed its merger with US
BioEnergy, effective tomorrow. In addition to the 11 current operating
facilities, VeraSun expects to start up five more facilities in 2008,
increasing its overall production capacity to 1.64 billion gallons and
becoming the largest ethanol producer in the United States.
The Bloomingburg facility is the fourth operating ethanol production
facility in the state of Ohio and one of the three biorefineries VeraSun
purchased from ASAlliances Biofuels, LLC in August 2007. Total production
capacity at the Bloomingburg facility represents more than 30 percent of
Ohio's total capacity of 345MMGY.
"The ethanol produced in Bloomingburg will extend our domestic fuel supply
and find its way into the marketplace as a low-carbon, high-octane component,"
Endres said. "The community of Bloomingburg and surrounding areas of Fayette
County should be commended for the role they are playing in further reducing
our dependence on foreign oil."
Located off State Route 238 Northeast, the plant will employ just over 50
people and annually process approximately 39 million bushels of corn to
produce about 350,000 tons of distillers grains for livestock feed. Cargill
will provide marketing services for the facility's ethanol and distillers
grains.
"On behalf of the Village of Bloomingburg, Union Township and Fayette
County, Ohio, we are very pleased that the new VeraSun Energy ethanol plant is
operational," said Rob Hedrick, director for the Fayette County Economic
Development office. "It has taken over three years to bring this massive
project to fruition, requiring the coordination and cooperation between
private enterprise, local, state and federal entities. We feel that VeraSun
Energy will bring a positive economic impact to our area and we welcome them
to our community."
About VeraSun Energy Corporation
VeraSun Energy Corporation (NYSE: VSE), headquartered in Brookings, S.D.,
is a leading producer of renewable fuel. Founded in 2001, the company has more
than one billion gallons per year (BGY) of ethanol production capacity through
11 operating facilities. Six facilities are currently either under
construction or development with a combined capacity of 660MMGY. Upon
completion of the new facilities, VeraSun Energy will have an annual
production capacity of approximately 1.75 billion gallons. The company
announced it started construction at its Aurora facility to extract oil from
dried distillers grains, a co-product of the ethanol process, for use in
biodiesel production.
VeraSun markets 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(TM). VeraSun Energy now has approximately 150 VE85(TM) retail
locations under contract in more than fifteen states and Washington, D.C. For
more information, please visit VeraSun Energy's websites at www.verasun.com or
www.VE85.com.
Forward-Looking Statements:
Certain statements in this release, and other written or oral statements
made by or on behalf of us, are "forward-looking statements" within the
meaning of the federal securities laws. Statements regarding future events and
developments and our future performance, as well as management's expectations,
anticipations, beliefs, plans, targets, estimates, or projections and similar
expressions relating to the future, are forward-looking statements within the
meaning of these laws. These statements are based on assumptions and
assessments made by our management in light of their experience and their
perception of historical trends, current conditions, expected future
developments and other factors they believe to be appropriate. Any forward-
looking statements are not guarantees of our future performance and are
subject to risks and uncertainties that could cause actual results,
developments and business decisions to differ materially from those
contemplated by any forward-looking statements. We disclaim any duty to update
any forward-looking statements. Some of the factors that may cause actual
results, developments and business decisions to differ materially from those
contemplated by any forward-looking statements include the volatility and
uncertainty of corn, natural gas, ethanol and unleaded gasoline prices; the
results of our merger with US BioEnergy; our ability to develop an oil
extraction business; the results of our recently acquired facilities; the
results of our hedging transactions and other risk mitigation strategies;
operational disruptions at our facilities; our ability to implement our
expansion strategy as planned or at all; our ability to locate and integrate
potential future acquisitions; development of infrastructure related to the
sale and distribution of ethanol; our limited operating history; excess
production capacity in our industry; our ability to compete effectively in our
industry; our ability to implement a marketing and sales network for our
ethanol; changes in or elimination of governmental laws, tariffs, trade or
other controls or enforcement practices; environmental, health and safety
laws, regulations and liabilities; our reliance on key management personnel;
future technological advances; limitations and restrictions contained in the
instruments and agreements governing our indebtedness; our ability to raise
additional capital and secure additional financing; and costs of construction
and equipment, as more fully described in the "Risk Factors" section of our
annual report on Form 10-K for the year ended December 31, 2007.
SOURCE VeraSun Energy Corp.
http://www.verasun.com