VeraSun Energy merges with U.S. BioEnergy; begins production at 11th plant

By Anduin Kirkbride McElroy | March 10, 2008
Web exclusive posted April 7, 2008 at 10:39 a.m. CST

VeraSun Energy Corp. announced two milestones on March 31. The merger between VeraSun and U.S. BioEnergy Corp. was approved by a majority vote of both companies' shareholders and became effective April 1. The merger, which was first announced in late November 2007, converts each outstanding share of U.S. BioEnergy common stock into 0.810 shares of VeraSun common stock. It also combines under the VeraSun name 17 biorefineries in production, under construction, or in development.

Eleven of those facilities are currently under production, including VeraSun Bloomingburg, a 110 MMgy production facility located near Bloomingburg, Ohio. The facility, which started producing March 31, was one of three plants purchased by VeraSun from ASAlliances Biofuels LLC in August 2007.

The production start of the Bloomingburg, Ohio, facility pushes VeraSun's annual production capacity above 1 billion gallons. In a press release, VeraSun said it expects to start up five more facilities in 2008, which would increase its overall production capacity to 1.64 billion gallons.