The ethanol boom is running out of gas as corn prices spike.
NEW YORK (Fortune) -- Cargill announces it's scrapping plans for a $200 million ethanol plant near Topeka, Kan. A judge approves the bankruptcy sale of an unfinished ethanol plant in Canton, Ill.. And that was just Tuesday.
Indeed, plans for as many as 50 new ethanol plants have been shelved in recent months, as Wall Street pulls back from the sector, says Paul Ho, a Credit Suisse investment banker specializing in alternative energy. Financing for new ethanol plants, Ho says, "has been shut down."
How can the ethanol industry be slumping only two months after Congress passed an energy bill most experts consider a biofuels boon? The answer is runaway corn prices.
http://money.cnn.com/2008/02/27/magazin ... 2008022809
The ethanol bust
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Re: The ethanol bust
It's not just ethanol. Biodiesel is shutting down too. At least two plants in Iowa have shut down due to high soybean/soybean oil prices.
Cargill will probably wait this out and buy up the bankrupt plants.
Cargill will probably wait this out and buy up the bankrupt plants.
If fascism ever comes to America, it will come in the name of liberalism. Ronald Reagan, 1975.
Progressivism is cancer
All my posts are satire
Progressivism is cancer
All my posts are satire