Farmers buy Marion, S.D. ethanol plantMARION, 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.