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Ethanol Redux E-mail
Wednesday, 23 December 2009

Low corn and natural gas prices have put American ethanol producers firmly in the black and have encouraged them to bring mothballed plants back on-line and to build new plants.. Estimates by the Renewable Fuels Association estimate that an additional 1.4 billion gallons of ethanol is on the way soon. This will more than offset the 1.2 billion gallons of production capacity from the idled plants. Archers Daniel Midland is building a brand new 275 million gallon plant in Columbus, Nebraska and another ADM plant of the same size will start up in Cedar Rapids, Iowa, early in 2010. A 60 million gallon bankrupt plant in Burley, Idaho, has also asked the court for permission to reopen to take advantage of the current profitability. More sanguine analysts say that with gasoline demand still low all of this new production will quickly push the ethanol industry back into the red and will flush out the few remaining smaller players.