VeraSun Energy, a key ethanol producer, has a new board chairman. Gordon Ommen has stepped down, and Duane Gilliam will be taking his place. Ommen is leaving “to focus on other business opportunities,” according to a VeraSun spokesperson.

Gilliam has a long resume in the oil industry. When he retired from Marathon Ashland Petroleum LLC in May 2003, he was executive vice president of corporate affairs. Prior to his time at Marathon Ashland, Gilliam was president of Ashland Petroleum Co. Ashland merged with Marathon in 1998.

The change of leadership marks just another problem for VeraSun. The ethanol manufacturer recently announced that it would not open three already completed ethanol plants, as well as delaying construction at two other plants. Investing experts are recommending investors sell VeraSun shares; the price per share has dropped 77 percent since the end of 2007. On December 21, 2007, VeraSun was selling at $17.75. It closed yesterday at $4.13.

The struggles VeraSun is facing are representative of the turmoil the entire ethanol industry is facing. VeraSun depends on corn to manufacture ethanol — a crop that is currently in short supply. To pull out of this tailspin, VeraSun needs to move towards a different feedstock for its ethanol — and fast.

Image — VeraSun Energy