No governor in country has been more active in the past year in recruiting bio-fuels plants to his satte than Indiana Governor Mitch Daniels. We wonder is some of his recruits are starting to feel burned?

VeraSun suspends construction in Indiana

By Staff Reports
Argus Leader
PUBLISHED: October 1, 2007

VeraSun Energy Corp., one of the nation’s largest ethanol producers, today announced that it will suspend construction of its 110 million-gallon-per-year ethanol biorefinery in Reynolds, Ind., due to weak market conditions.

The company expects to resume construction in 2008.

“We believe it’s important to be mindful of the current market conditions and manage our business accordingly,” said Danny Herron, VeraSun Chief Financial Officer and Senior Vice President. “Given the abrupt change in market conditions that have seen ethanol prices drop nearly 50 cents per gallon in the last 60 days, it is prudent for us to adjust our current pace of expansion. Due to Reynolds’ early stage of development, we believe it is wise to suspend investment until the market provides an acceptable return.”

VeraSun originally announced plans to build the Reynolds facility on April 18, 2007, and completed site grading and preparation work in August. VeraSun continues to expand its business with four facilities under construction in Hartley, Iowa, Welcome, Minn., Albion, Neb., and Bloomingburg, Ind.

“We have a large business that we are growing rapidly with four facilities continuing under construction,” said Don Endres, VeraSun Chairman and CEO. “We remain confident in the outlook for our industry and believe that with ethanol currently priced at a dollar less than gasoline, it provides a great value as a high-octane, clean-burning renewable fuel that will drive additional blending throughout the nation.”