Let's hold up with that statement for now, because there is a little asterisk in the press release (read it yourself after the break) that anything beyond the 1.6 billion gallon number is "Assuming construction resumes in 2008, which will depend on market conditions." As we all know, the ethanol market is not exactly in the strongest shape it's ever been in these days. With the low prices and product glut and lots of criticism of corn ethanol, I'm sure at least some at the two merging companies
This is not good news for American ethanol advocates: VeraSun is suspending construction at its 110-million-gallon-a-year ethanol plant in Reynolds, Indiana because ethanol prices are too low. This matters more than the shutdown of two biodiesel plants in Texas that we mentioned yesterday. Why, you might ask? Because Reynolds, Indiana is actually BioTown, USA.