Valero Energy Buys Six of Verasun's Ethanol Plants: More Big Oil Backing Biofuels
photo: Nic McPhee via flickr
Back at the beginning of November, the world's largest producer of ethanol, VeraSun filed for bankruptcy. Today comes word that Valero Energy , the US's largest independent oil refiner, has bought seven of Verasun's facilities, for a price of $477 million:The purchase was approved yesterday and gives Valero ethanol plants capable of producing a total of 780 million gallons of biofuel per year. The acquisition will satisfy about one-third of Valero's EPA biofuel requirements.
Though Valero has opposed Federal ethanol blending mandates in the past, now that it appears that government mandates are here to stay for the foreseeable future, and it can snap up some of Verasun's assets at sale prices, the purchase makes sense for the San Antonio-based firm. (Green Inc. )
In an interesting timing coincidence, yesterday came word that Shell would be getting out of wind and solar power, instead backing biofuels as its renewable energy source of choice.
via: Delaware Online, Green Inc.
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