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Ethanol plants based on food crops are taking a serious hit because of the price hike for grains and the flooding in the Mid-west that has wiped out a significant number of crops. In just the most recent news, Heartland Ethanol is tossing plans to build seven corn ethanol plants in
With corn passing $8 a bushel and a 10% drop in production over the last year, it seems that corn ethanol is finally reaching the end of its popularity (of what little it had left) and corn ethanol plants are either already in, or nearing the red without the prospect of getting funding thanks to the credit crunch.
Corn ethanol is likely just the first of many crop-based ethanols to take an immediate dive, despite the best efforts of biofuel companies. Ethanol stocks are getting downgraded since Citi analysists are predicting more large-scale shut-downs as small and midsize producers will be forced to shut down due to the price issues, representing a loss of between 2-5 billion gallons of ethanol per year. Citigroup analyst David Driscoll is predicting that about 76% of ethanol plants are at risk of shutting down in the next few months. Earth2Tech has counted 11 plants whose operations are suspended just since May (see the above map). Feels a little bit like a rapid downward spiral, doesn't it?
What does this mean for the future of biofuel? Well, most likely it means more research will be going in to cellulosic ethanol and creating fuel from municipal waste, and those companies already working on that technology will get a little more wiggle room from competitors for awhile. Figuring out how to turn trash to fuel is a whole lot more logical than turning crops to fuel anyway. And I suspect fuel from algae will gain in popularity pretty quickly, making coal plants happy since it’s an opportunity for them to “green up” their image among the general population. I highly doubt the shutdowns will do much to change grain prices in the short term.
However, it’s tough to mentally dig ourselves out of yet another boom-to-bust industry in our already flailing economy, especially one that once held so much hope for those that wanted to "go yellow." We’ll just have to watch, wait, and hope that necessity is indeed the mother of invention and some awesome new cellulosic ethanol technology will bust wide open.
Via Earth2Tech, Platts, BiofuelsDigest
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written by dhd, July 01, 2008
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written by RadCenter, July 01, 2008
They've been waging a media campaign to blame higher food costs solely on ethanol so they can drive down the price of commodities again.
Read more here: http://www.farmanddairy.com/co...y-grocers/
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written by Cain, July 01, 2008
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written by dialtone, July 01, 2008
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written by cmdrkynes, July 03, 2008
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written by agenergy, July 04, 2008
the ethanol ADM publicly admits to producing. In fact, when you toss in the ethanol produced by shell -false front companies and captive farmer cooperatives -- the ratio would probably be much worse. Compare "contributions" to political parties (versus donations to so-called independent farm groups) and the "ratio" is even more scewed. ADM and its mainly controlled foundations, far surpasses any US campaign contributor. The Super Mark-up to the world has become the super-corrupter.
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written by chris wharton, July 14, 2008
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written by Ash, July 15, 2008
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written by mog, July 21, 2008
some small amount is captured and converted to the hydrogen and oxygen in ethanol, then released as steam from exhaust pipes when the ethanol is used in the engine.
these plants closing down is a prime example of the free market at work. now, if only we could get API and ADM to stop manipulating the market....
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Anyway, hopefully algae will come to the forefront faster and we can all be happy.