VeraSun Energy Corp. said it started up its ethanol plant Tuesday in Hankinson, in southeastern North Dakota, after a delay due to a volatile market. Residents are happy to see it.

"My understanding is they have started grinding corn and they're getting fired up," said Bob Wurl, a member of the city's economic development group.

Construction of the plant over the past two years has been good for the region's economy, Wurl said.

"It's been huge impact for merchants," said Wurl, a banker in the town of about 1,060 people.

The plant, built in 2006, can produce 110 million gallons of ethanol a year. It employs about 50 people just off Interstate 29.

Brookings, S.D.,-based VeraSun had delayed the startup last month. Company officials would not give specific reasons for the turnaround in their plans. One reason may have to do with the price of corn, which is used to make ethanol.

Corn for December delivery rose to an all-time high of $7.96 a bushel late last month, but it fell below $6 a bushel Tuesday.

"The decision to begin production at Hankinson is based on a number of factors, including an improved margin environment as well as other business considerations unique to the facility," VeraSun Chief Executive Officer Don Endres said in the statement.

VeraSun said the Hankinson plant will process about 39 million bushels of corn a year and produce about 350,000 tons of distillers grains for livestock feed. It said the Hankinson plant is the company's third to come online this year, along with plants in Marion, S.D., and Bloomingburg, Ohio.

The plant started as US BioHankinson, but it became VeraSun Energy when VeraSun and US BioEnergy merged late last year.

Jane Priebe, Wahpeton's economic development director, said about 20 workers who lost jobs at a failed floppy diskette plant in her city are working at the ethanol factory in Hankinson.

Priebe said the startup of the ethanol plant in neighboring Hankinson was good news for the region.

"We heard they are actually crushing corn," Priebe said. "We think this is an added plus for the Richland County area."