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Published August 03, 2009, 11:30 AM

Farmers buy Marion, S.D. ethanol plant

MARION, S.D. (AP) — A farmer cooperative has acquired the former VeraSun ethanol plant in Marion, southwest of Sioux Falls.

MARION, S.D. (AP) — A farmer cooperative has acquired the former VeraSun ethanol plant in Marion, southwest of Sioux Falls.

Central Farmers Cooperative is renaming the plant NuGen Energy LLC. The group says the 100-million-gallon plant will operate at capacity immediately and will re-establish a 33-million-bushel market for area corn.

Sioux Falls-based VeraSun filed for Chapter 11 bankruptcy protection last fall. VeraSun, which was the nation's No. 2 ethanol producer, owned 16 biorefineries.

Central Farmers did not disclose the purchase price for the Marion plant, but Dougherty Funding LLC submitted a credit bid of $93 million for the plant when it was sold in a bankruptcy auction in March.

Central Farmers CEO Steve Domm says a favorable financing package Dougherty offered NuGen Energy was a key factor in making the deal happen.

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