Perhaps the BioTown project was too ambitions; VeraSun's ethanol plant stopped
This is not good news for American ethanol advocates: VeraSun is suspending construction at its 110-million-gallon-a-year ethanol plant in Reynolds, Indiana because ethanol prices are too low. This matters more than the shutdown of two biodiesel plants in Texas that we mentioned yesterday. Why, you might ask? Because Reynolds, Indiana is actually BioTown, USA. That's right, the one town in America where everything was supposed to be about bio-energy can't support an ethanol plant. VeraSun announced the plant back in April and construction was supposed to take 18 months. We're a third into that time frame, and here we sit. Reuters is reporting that the company would really love to resume construction next year, but that's dependent upon "the return of more favorable market conditions."
For BioTown, even a little uptick would be nice, I'm sure. The shame of not having any ethanol is hard to rub off in BioTown.
[Source: Reuters]
Reader Comments (Page 1 of 1)
jcwinnie 10:34AM (10/02/2007)
Good timing, Seb, NYT reporter Clifford Krauss also has a story about the ethanol glut.
The distribution, or lack thereof, of ethanol is controlled by those companies that distribute gasoline and diesel. Interesting to note that the Syngas Spin marches on.
Big Oil seems pretty secure in telling the car companies to forget E85. Why is that, do you suppose?
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GreyFlcn 3:45PM (10/02/2007)
You got it backwards.
Big Oil loves Ethanol.
In the same way that Republican Canidates love Ralph Nader.
No chance of being a serious contender, but does a great job of pulling attention, dollars, and political legistlation away from real options.
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Eric Burch 10:43AM (10/03/2007)
Just a couple of points for clarification:
The Verasun Reynolds plant is not a part of the BioTown, USA project itself. It is an example of some of the economic development opportunities coming to that small town.
Biofuels, including ethanol, continue to represent tremendous opportunity for our farmers, our rural communities and our environment. As any industry continues to grow, companies must constantly adjust strategies to stay in tune with the market. This is a normal part of business, and biofuels are no exception. What you’re seeing is this adjustment and not an end of the ethanol industry.
Also, Ethanol (E85) and Biodiesel (B20) are available in Reynolds at the town's lone gas station. It has been available there since last year. Reynolds most likely has the highest per capita of FlexFuel vehicles--170 in a town of 457.
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CIMark 4:09PM (10/11/2007)
Sebastian - I recently used this post in my examination of the ethanol bust as seen in the blogosphere: http://www.collectiveintellect.com/2007/10/ethanol_and_biofuel_bust.php
I have been following and enjoying your coverage of the collapse and thought you might like to see my findings.
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Brenda MacLeod 12:21PM (1/05/2008)
I have a source of grant funding for the Bio-Town ethanol project in Reynolds. There is also an opportunity to participate in the most innovative technology in recycling ever, the income from which could totally sustain the city's other programs. This is proprietary information. Please forward this e-mail address to the officials or trustees directly involved, or provide contact information in this blog. There is private help for this worthwhile project.
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