Demand for ethanol increases profits for Valero

Despite a tough year for Valero Energy in the refining business the company made a profit of $49 million (€32.7 million) for one quarter and $71 million for the next.

Valero, based in Texas, US, is reaping the benefits of buying seven corn ethanol plants for $477 million.

The company’s high profits are linked to an increase in demand for ethanol. This is most likely due to the low prices of corn and the government mandates to boost usage.

Valero’s profits are spurring producers on to ask the EPA to increase the blend of ethanol in petrol from 10% to 15%.

source: biofuels-news