Valero 2009 Annual Report Download - page 23

EDWARDS: Alternative fuels will continue to be part of the
transportation fuel supply mix. We look at ethanol as a natural
t for us since we manufacture transportation fuels. Over the
past few years, Valero studied the business and waited for the
right moment to enter the industry. During 2009, we executed
a well-timed acquisition of seven ethanol plants at 35 percent of
estimated replacement cost. The plants generated $165 million
in operating income in just under three quarters of operation
in 2009. In 2010, we are already integrating three new ethanol
facilities, making our Renewables division one of the largest
ethanol producers in the country. We have brought signicant
value to this business, given our operating and logistics experience.
Corn-based ethanol is just one part of Valero’s alternative energy
portfolio. We have also made several seed investments in
biofuel technologies for ethanol and biodiesel, and our
infrastructure has the capability to “bolt-on” future cellulosic
production capacity. In addition, we own a 50 mega-watt wind
farm in the Texas Panhandle, near our McKee renery, generating
wind energy and helping reduce Valero’s carbon footprint.
BOWERS: The success of the company has always been
measured by more than nancials. It is realized in our employees’
ability to work safely, protect the environment, and just as
importantly, take their commitment to excellence into their
community to make lasting change. Valero recognizes that the
neighborhoods and communities surrounding our reneries,
ethanol plants, retail stores and terminals are a part of who
we are. We have an obligation to work as efciently, smartly
and as safely as we can so that everyone can benet. Valero
employees and contractors consistently post very low injury
rates; investments in clean fuel and cleaner rening processes
continue to be made; and, our volunteer network is a national
pacesetter in community involvement. Meanwhile, the Valero
Energy Foundation strengthens communities through its own
nancial gifts, contributing more than $25 million in 2009 to
worthy charities and events. Valero employees also pay it
forward, pledging $12 million to United Way agencies in 2009.
Despite a difficult year and
a difficult point in the cycle
for Valero, the company
aggressively entered the
alternative energy business
in 2009. Going forward,
what is Valero’s alternative
energy strategy?
Valero’s commitments to
safety and the environment
have always been top
priority. How do these
commitments, and Valero’s
overall social responsibility,
play a role in the success of
the company?