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
North Dakota's newest ethanol plant is capitalizing on the state's abundant lignite coal industry. By building near an inexpensive energy source, Red Trail Energy is locking in low operating costs for the long run.
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