Valero Idles Nebraska, Indiana Ethanol Mills on Poor Margins - Bloomberg
Valero Energy Corp. (VLO), the third-
biggest U.S. ethanol producer, idled its distilleries in Albion,
Nebraska, and Linden, Indiana, until it’s profitable for the
plants to produce the fuel.
The mills each have capacity to produce 120 million gallons
of the fuel, annually, and were shut earlier this year because
of the poor margins before San Antonio-based Valero restarted
them in September.
“They’ll restart once margins improve to a point where
it’s economically feasible to run them,” Bill Day, a company
spokesman in San Antonio, said in an e-mail.
Corn is the main ingredient for the alternative fuel in the
U.S., with one bushel distilling into at least 2.75 gallons of
ethanol. The worst U.S. drought in 56 years scorched crops for
the grain and has boosted prices 15 percent this year.
Denatured ethanol for November delivery advanced 2.8 cents,
or, 1.2 percent, to settle at $2.413 a gallon today on the
Chicago Board of Trade. Futures have gained 9.5 percent this
year.
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