Valero to run new ethanol plants full throttle

Valero Energy Corp, the recent buyer of seven ethanol plants, said it will run them at full capacity despite poor average margins.

(Reuters) – Top U.S. oil refiner Valero Energy Corp , the recent buyer of seven ethanol plants, said it will run them at full capacity despite poor average margins for making the alternative motor fuel.

“Because of the amount of ethanol we are required to buy for blending in gasoline, it makes sense for us to produce the ethanol,” Bill Day, a spokesman for Valero, said in an interview. He did not say exactly when the plants would be at capacity, citing the fact that it has yet to complete the purchase on a few of them.

Valero will also trade corn and ethanol, hoping its experience trading crude oil, gasoline and diesel will help it avoid difficulties that bankrupted the company from which it bought the distilleries.

Reuters