In a letter to its corn suppliers and lenders, the Husker Ag LLC board of directors confirmed that it has temporarily halted operations at its 67 MMgy corn-based ethanol plant in Plainview, Neb.
According to a press release, Husker Ag said it will use the time for repairs and maintenance at the facility, in addition to renegotiating corn contracts with its suppliers contracted for delivery during 2009. As a commodity-based business, the company also cited “record volatility in all markets” as the main reason for its current cash-flow issues.
Husker Ag held a meeting with its corn suppliers on Jan. 5 and offered them terms that would help the company’s cash flow to sustain operations. Ethanol Producer Magazine was unable to verify if and when Husker Ag intends to resume production.
Meanwhile, Pacific Ethanol Inc. confirmed that it temporarily suspended operations at its 40 MMgy corn-based facility in Madera, Calif., effective Jan. 12. The Sacramento, Calif.-based ethanol producer and marketer “extended unfavorable market conditions for producing ethanol” as the primary reason for the move. In the meantime, Pacific Ethanol said it will continue to market ethanol through its wholly owned subsidiary, Kinergy Marketing, with its existing plants currently in operation and with other Kinergy Marketing suppliers.
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Pacific Ethanol’s current operating plants include: Pacific Ethanol Columbia LLC, a 35 MMgy facility in Boardman, Ore., and Pacific Ethanol Magic Valley LLC, a 50 MMgy plant in Burley, Idaho. The company also has a 42 percent stake in Front Range Energy LLC, which owns a 40 MMgy corn-based plant in Windsor, Colo.
Suncor Energy Inc. is “looking to demobilize construction activities” for a planned $101 million expansion project at its existing 200 MMly (52.8 MMgy) ethanol plant in Sarnia, Ontario, Suncor spokesman Jason Vaillant told EPM.
The expansion project was aimed at doubling the Sarnia facility’s capacity to 400 MMly (106 MMgy). Suncor planned to finish the project by late this year, but Vaillant said the company intends to revisit the project in early 2010, with full production estimated to begin by the first quarter 2011.
“It’s a tough time in the industry right now, but we’re optimistic we’ll get through it,” Vaillant said.
Meanwhile, VeraSun Energy Corp. confirmed to EPM that of the company’s 16 total operating ethanol plants, 12 have shut down, resulting in 1.14 billion gallons of offline capacity exclusive to the company.
The idled plants include: VeraSun Albert City LLC, a 100 MMgy plant in Iowa; VeraSun Albion LLC, a 100 MMgy facility in Albion, Neb.; VeraSun Bloomingburg, a 100 MMgy plant in Bloomingburg, Ohio; VeraSun Central City LLC, a 96 MMgy facility in Central City, Neb.; VeraSun Dyersville LLC, a 110 MMgy plant in Dyersville, Iowa; VeraSun Hankinson LLC, a 110 MMgy facility in Hankinson, N.D.; VeraSun Janesville LLC, a 110 MMgy plant in Janesville, Minn.; VeraSun Linden LLC, a 100 MMgy facility in Linden, Ind.; VeraSun Marion, a 110 MMgy plant in Marion, S.D.; VeraSun Ord LLC, a 45 MMgy facility in Ord, Neb.; VeraSun Welcome LLC, a 110 MMgy plant in Welcome, Minn.; and VeraSun Woodbury, a 50 MMgy facility in Woodbury, Mich.
VeraSun Energy currently has four operating ethanol plants in the Midwest with a combined capacity of 450 MMgy. Those plants include: VeraSun Charles City LLC, a 110 MMgy facility in Charles City, Iowa; VeraSun Fort Dodge LLC, a 110 MMgy plant in Fort Dodge, Iowa; VeraSun Hartley LLC, a 110 MMgy facility in Hartley, Iowa; and VeraSun Aurora, a 120 MMgy plant in Aurora, S.D.
According to Lockrem, construction on the Janesville and Welcome, Minnesota plants is complete, but neither have started-up operations. Lockrem provided no estimate as to when the idled plants would resume production.
