July 25, 2009
Top U.S. oil refiner Valero Energy Corp said all seven of the ethanol plants it bought in March from a bankrupt producer were now running at capacity and making money.
"Ethanol is kind of a bright spot for us right now. They are generating cash flow," Valero spokesman Bill Day said of the plants, which have the combined capacity of about 780 million gallons a year, or about 7.5 percent of the total U.S. operating capacity to make the fuel.
Valero began production at the 110-million-gallon-per-year ethanol plant in Welcome, Minnesota, during the first week of July, Day said by telephone.
The company bought the plants from VeraSun Energy, which filed for bankruptcy protection after locking in pricey contracts for corn, the main input cost for making ethanol.
Source : Reuters India