VeraSun delays Janesville plant startup indefinitely for lack of financing

By Caroline Salls

Pittsburgh, Nov. 4 - VeraSun Energy Corp. is indefinitely delaying the startup of its 110 million gallon per year ethanol biorefinery in Janesville, Minn., according to a company news release.

VeraSun said it will continue operations at its 14 facilities across an eight-state region.

According to the release, the secured lender of the Janesville plant has not provided the necessary financing to continue construction and startup activities. The company said efforts to secure financing for Janesville are underway.

VeraSun said construction on the Janesville facility is nearly completed, and the plant was scheduled to begin operations before the end of the year.

Construction began in January 2007, and ownership of the plant moved to VeraSun on April 1, 2008 following its merger with US BioEnergy.

The company said most of the 53 employees at the plant will be furloughed immediately.

VeraSun, based in Brookings, S.D., produces renewable fuel. The company filed for bankruptcy on Oct. 31. Its Chapter 11 case number is 08-12606.

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