US Valero buys, will restart Indiana ethanol plant

24 March 2014 16:02  [Source: ICIS news]

HOUSTON (ICIS)-- Valero Renewables has purchased a corn ethanol plant in Mount Vernon, Indiana, that has been idle for two years, according to parent company Valero.

The plant, which is about the same size as the 10 other ethanol plants operated by Valero Renewables, will be restarted over the next several months. Once fully staffed, with about 60 to 65 people, the company will look at ways to increase efficiency and possibly expand production, Valero spokesman Bill Day said on Monday.

The current production capacity of 110m gal/year at the Mount Vernon plant will increase Valero's ethanol production capacity to more than 1.3bn gal/year, the company said in a statement.

“We intend to invest in the Mount Vernon plant to make it competitive with other top-tier ethanol facilities,” said Martin Parrish, Valero vice president, alternative energy and development.

The plant location offers logistical advantages with ready access to corn suppliers and to rail, truck and badge transportation. It is Valero Renewables' first facility located at a major port on the inland waterway system, the statement said.

The plant is located on 116 acres at the Port of Indiana on the Ohio river. The plant was previously owned by Aventine Renewable Energy. It was brought online in December 2010 and operated until early 2012, according to port information.

Aventine emerged from bankruptcy in March 2010. It continues to operate several facilities in Illinois and Nebraska.

"Aventine’s strategic divestiture of the Mount Vernon plant is an important step in revitalizing and refocusing our portfolio of ethanol assets at our Pekin, Illinois and Aurora, Nebraska facilities, while also strengthening our balance sheet," Aventine CEO Mark Beemer said.

By: Jessie Waldheim

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index