Valero Closing Two Ethanol Plants
Company also declares force majeure on shipments for DDGs and corn purchases
Fuel ethanol producer and refiner Valero is shutting down two of its ethanol plants, one in Nebraska and the other in Iowa, reports KRVN.
They’re also declaring “force majeure” on shipments for dried distillers’ grains or corn purchases, which means they won’t be able to meet contracted demands because of unforeseeable conditions.
The force majeure is because of a lack of storage availability for corn or ethanol as demand for fuel drops and storage remains limited due to the excess supply. The coronavirus outbreak is causing Americans to drive considerably less than usual, so the low demand and excess supply are forcing Valero to close plants in Albion, Nebraska, and Albert City, Iowa.