VeraSun Energy Corp., one of America’s largest producers of ethanol has cancelled its plans to start a 110 million gallon per year, ethanol biorefinery in Janesville, Minnesota for the moment, stating that their startup was indefinitely delayed. It will continue its operations in the 14 other facilities it owns across an eight state region.
The corporation filed for bankruptcy last month, petitioning for relief under chapter 11 of the Bankruptcy code in the US Bankruptcy Court to enhance liquidity while it tried to reorganize its operations.
The development of the Janesville plant halted as the secured lender of the plant did not provide the necessary financing to continue construction. At present, efforts to secure financing for the project are underway.
Construction at the plant which began in January 2007, is nearly complete and the plant was scheduled to start at the end of this year. Ownership of the plant came into the hands of VeraSun in 2008 following its merger with US BioEnergy.
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