By Anduin Kirkbride McElroy
March 27, 2007
When gasoline prices were at record-high levels and oil companies were making record profits, as well as collecting billions in subsidies, consumers saw red. To show their constituents that they feel their pain, and to decrease the nation's dependence on foreign oil, some in Congress are proposing to redirect subsidies paid to gas and oil companies to support renewable energy.
With tougher federal emissions standards on the horizon and an aging fleet of diesel-electric locomotives, could the ethanol-hybrid locomotive become the next American railroad workhorse?
A trend toward mergers and joint ventures has emerged as the competition to be the first to commercially produce cellulosic ethanol heats up. Partnerships help companies obtain the necessary resources and spread out the risks associated with the building of a new industry.
Technological breakthroughs have led to big efficiency gains in the ethanol industry, but the perceived failure rate of novel processes is a financial risk few lenders are willing to accept without supplementary backing or enticing variables.
Ethanol plant project development is an increasingly complicated process as the price of everything from concrete to heat exchangers has skyrocketed. That inflation is eating into builder profits, and it has some potential ethanol producers taking a hard look at their project's bottom line.
Ethanol plant developers should be able to find ample equity for sound, well-managed projects. Nevertheless, the structures upon which to build equity are still being tweaked.
By Jason Sagebiel, FCStone
March 06, 2007
USDA lowers projections across the board
By Sean Broderick, Commodity Specialists Company
March 06, 2007
High prices deter cattle producers
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