VeraSun Energy: Startup of Hankinson, North Dakota, Ethanol Biorefinery
"We are pleased to be bringing our Hankinson facility into operation, adding production to our fleet and additional fuel to our domestic supply," said VeraSun CEO Don Endres. "It is the result of the hard work and dedication of our employees, the community, and the state's leadership, that we are able to nearly double the ethanol production capacity of North Dakota with its first 110-million-gallon biorefinery."
Construction on the Hankinson facility began in August of 2006 and was completed in June. It will annually process approximately 39 million bushels of corn and produce about 350,000 tons of distillers grains for livestock feed. VeraSun took ownership of the facility through its merger with US BioEnergy, which became final on April 1.
"The decision to begin production at Hankinson is based on a number of factors, including an improved margin environment as well as other business considerations unique to the facility," Endres said. "We continue to closely monitor market conditions and make decisions that are in the best interest of our company."
Located on a 220-acre site just off of Interstate I-29 in southeastern North Dakota, the Hankinson ethanol biorefinery employs approximately 50 people. It is the third VeraSun facility to come on-line this year, joining sister production facilities in Marion, S.D., and Bloomingburg, Ohio, all engineered by ICM, Inc., of Colwich, Kan. and built by Fagen, Inc., of Granite Falls, Minn.
"The growing need for homegrown, renewable fuels in our country has never been more apparent than it is today," added Endres. "Thanks to corn producers, in North Dakota and throughout the Midwest, we are starting down a meaningful path towards reducing our dependence on foreign oil, while boosting our local and domestic economies."
About VeraSun Energy Corporation
VeraSun Energy Corporation (NYSE: VSE), headquartered in Brookings, S.D., is a leading producer and marketer of ethanol and distillers grains, a valuable livestock feed. Founded in 2001, the company has a fleet of 16 production facilities in eight states, of which two are still under construction. VeraSun Energy is scheduled to have an annual production capacity of approximately 1.64 billion gallons of ethanol and more than five million tons of distillers grains by the end of 2008. VeraSun also 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(R). For more information, please visit VeraSun Energy's websites at www.verasun.com or www.VE85.com.
We have included or incorporated by reference in this press release forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based upon the current beliefs and expectations of the management of VeraSun, are subject to risks and uncertainties outside of our control, and actual results might differ materially from these statements. VeraSun is not under any obligation, and expressly disclaims any obligation, to update, alter or otherwise revise any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future events or otherwise.
Some of the factors that may cause actual results, developments and business decisions to differ materially from those described in 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; excess production capacity in our industry; our ability to compete effectively in our industry; 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" sections of our annual report on Form 10-K for the year ended December 31, 2007 and our quarterly report on Form 10-Q for the quarter ended March 31, 2008.
SOURCE: VeraSun Energy Corp.
CONTACT: Investors: Patty Dickerson, +1-605-696-7236, firstname.lastname@example.org, or Media: Mike Lockrem, +1-605-696-7257, email@example.com, both of VeraSun Energy Corporation