Ormat backs away from its $1.8m biodiesel investment
After investing $1.8 million in a biodiesel plant (out of a planned investment of beween $35 and 50 million), Ormat Industries will be postponing further development in the facility. The idea had been to use "high-yield non-edible plants for biodiesel production" at the plant in the plant, but those plants aren't ready yet and soy prices haven't been kind to biodiesel producers. According to Globes Online, Ormat's statement said that the company will continue to focus on developing the the biological plants instead of the production facility. Ormat's stated reasons for the postponement are increased costs (e.g., soy went from $3-4 a bushel to $12 in the past year). As IBI Investment House analyst Yuval Zehira told Globes Online, "Today, most biodiesel and ethanol companies in the world are losing money because of high commodities prices."
[Source: Globes Online]
Reader Comments (Page 1 of 1)
Owain Ozymandias Buck 7:45AM (1/09/2008)
This sounds like common sense. Right now is not a good time to be jumping into biodiesel production. Feedstock genotype development and crop production system work are key to further growth of biodiesel in the U.S.
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Suggestion: don't use "plant" and "plant" so close together when they have different meanings. Try feedstock, production facility, etc.
It turned out the guy was a plant at the plant plant. He was working on the plants, but the plants weren't ready for the plant yet. He secretly planted it. Sorry. ;)
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