Valero Energy is beefing up its ethanol presence, purchasing three more plants — including two more facilities — for a collective $272 million, according to the Oil Price Information Service (OPIS).
Valero Renewable Fuels Company signed an agreement with ASA Ethanol Holdings to purchase two former VeraSun ethanol plants — one in Linden, IN, and another in Bloomingburg, OH — each with a 110-million-gallon/year capacity, for $200 million.
Also, Valero received approval from a bankruptcy court to acquire Renew Energy's 110-million-gallon/year ethanol facility located near Jefferson, WI, for $72 million following a bankruptcy auction held last month.
The plants will be purchased for approximately 41% of their estimated replacement cost, Valero says.
These acquisitions expand Valero's ethanol production capacity to 1.1 billion gallons/year. Valero acquired seven ethanol plants formerly owned by VeraSun earlier this year for a collective $477 million.
