The ethanol industry in the United States is going through a challenging period at the present. These challenges are creating changes within the ethanol industry in the Midwest.
Some prospective ethanol plant projects have been put on hold until the industry's economic conditions -- lower ethanol prices, higher corn prices, tighter credit conditions and increasing energy costs -- improve.
Locally, ethanol plants in production are continuing strong in Benson, Granite Falls and Atwater. One North Dakota plant has shut down until the ethanol market improves.
VeraSun Energy Corp., based in Brookings, S.D., Thursday made a major move and bought US BioEnergy Corp., based in Inver Grove Heights. VeraSun was No. 3 ethanol company in the United States and US BeoEngergy was No. 4.
The combined company would produce about 870 million gallons of ethanol a year. However, the company has eight new plants under construction. This new capacity would bring the company production to 1.6 billion gallons per year. This would push VeraSun ahead of Poet, based in Sioux Falls, S.D., and Archer Daniels Midland, who each produce about 1 billion gallons.
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The current and future changes resulting from industry and economic pressures will hopefully produce a stronger ethanol industry. The improving ethanol industry strength will be beneficial for west central Minnesota.
