Valero idles second ethanol plant due to tight margins

By Susanne Retka Schill | June 27, 2012

Add another idle ethanol plant to the list of those cutting their losses as the current margin squeeze tightens. Bill Day, executive director of media relations, confirmed Valero Renewable Fuels LLC has “temporarily suspended production at the Linden (Ind.) ethanol plant for economic reasons, similar to the Albion plant. We expect to resume production once market conditions improve.”  Valero’s Indiana plant has a capacity of 120 MMgy.

Valero announced earlier in June that it was temporarily idling its 120 MMgy plant in Albion, Neb. Valero has 10 plants producing ethanol in seven states. Besides the plants in Nebraska and Indiana, Valero operates four in Iowa, and one each in South Dakota, Ohio, Minnesota and Wisconsin, for a total operating capacity of 1.2 billion gallons.