Combined VeraSun, U.S. BioEnergy facilities

By Bryan Sims --The November merger agreement announced between Brookings, S.D.-based VeraSun Energy Corp. and St. Paul, Minn.-based U.S. BioEnergy Corp. was a clear indication that the industry is gaining more velocity toward consolidation.

According to industry analysts, the move came at the right time in light of the Energy Independence and Security Act of 2007 that was signed by President George W. Bush in December. “I really don’t think this came as a surprise to the industry,” said Rick Kment, ethanol analyst for Data Transmission Network. “I think this goes back to the focus of current companies in the ethanol industry looking at the market maturing, going through the general market changes and [moving] from an early-entrance type of market to more of a maturing industry.”

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