Nationwide Ethanol Plant Woes
The downturn in the ethanol industry is no longer limited to the Midwest. The Syracuse NY Post-Standard editorial board wrote this weekend about a NY state ethanol refinery declaring Chapter 11, and the ethanol industry's attempts to secure more federal assistance.
Just in 2007, the corn-based ethanol industry received nearly twice as much in subsidies and three times as much in tax breaks as solar, wind, geothermal and other renewable energy producers.The diversion of so much corn to ethanol production helped push food prices up worldwide, worsening food shortages in many countries and contributing to global hunger. Ironically, this also hurt the ethanol plants, which had to pay higher prices for their main ingredient.
When the price of ethanol plummeted with gasoline and credit tightened, many ethanol companies went under. About 9 percent of all ethanol plants in the United States have filed for bankruptcy, and some say that could soon exceed 20 percent.
Now, the industry is asking for a federal bailout. The answer should be no.
Read the whole piece here.
Post a comment