VeraSun Energy officials say market conditions prompted a delay in the Hartley plant opening. The cost fluctuations also prevented VeraSun spokesperson Mike Lockrem from identifying a new start up date.
He said the opening of a similar VeraSun plant in Welcome, Minn., has also been delayed. Welcome is an interstate town just over the Iowa border and northeast of Estherville near Fairmont, Minn.
"We'll monitor market conditions," Lockrem said. "The decision to shut those facilities down was based on current market conditions -- a combination of higher corn prices and ethanol selling at a relatively low price. Once those market conditions become more favorable -- which, we remain optimistic they'll become more favorable -- we'll get these plants up and running."
A VeraSun plant opening in Hankinson, N.D. -- also slated for the second quarter of 2008 -- has not been delayed. Construction and training will continue at the three newest VeraSun sites. Other plants will remain in operation, with no immediate changes announced by the company.
The Hartley plant is expected to employ 55 workers.
"Those employees will continue as part of the VeraSun team," Lockrem said. "The plant is expected to produce 110 million gallons of ethanol annually. I think that's the other key thing, too. The employees of these facilities will remain part of the VeraSun team at their plants."
The company has 11 operating facilities in eight states and more than a billion gallons of ethanol in production. VeraSun facilities are, or will be, located in South Dakota, North Dakota, Nebraska, Iowa, Michigan, Indiana, Minnesota and Ohio.
VeraSun is headquartered in Brookings, S.D., but is in the process of relocating corporate offices to Sioux Falls, S.D.
"We remain optimistic about the industry in that these market conditions will become more favorable so that the plants will come into production," Lockrem said.
As a whole, he said the industry continues to provide a solution to the nation's energy crisis through a product grown domestically. He thinks ethanol will continue to have a positive impact on agricultural communities in rural America.
"We think the future is bright," Lockrem said. "We're just at a period right now where we have to makes some adjustments."
