Valero's Ethanol Dreams Via VeraSun Refineries (VLO, VSE)

Valero Energy Corp. (NYSE:VLO) has submitted a “stalking horse” bid for six properties offered by VeraSun Energy Corp. (formerly NYSE:VSE) as part of VeraSun’s bankruptcy sale. All told the six plants have a capacity to refine about 670 million gallons of ethanol annually. Valero’s bid totals about $280 million, about a third of what it probably cost to build the plants.

It’s pretty hard to believe that Valero actually wants to buy these facilities. We’ll know soon, though. Bids for these and other VeraSun properties are due March 13th.

Paul Ausick
February 9, 2009