More on the coming American ethanol glut
As we wrote recently, America is about to be flooded with ethanol. This "flood" certainly won't be enough to supplant all of our oil imports, but it will be large enough to make ethanol plants less profitable and therefore changing the equation for a lot of producers and buyers.
The LA Times recently spoke with Gordon Ommen, co-founder of US BioEnergy Corp. (AutoblogGreen's interview with US BioEnergy reps is in the video above) and others in the ethanol industry about the biofuels future in America. The viewpoint that profits will plateau once we get to making nine or ten billion gallons a year is
starting to sound like a refrain, but these ethanol producers are still bullish on what they're doing (or, at least, they're confident to the media).
There is, of course, a lot more to the story. I'm talking about the increasing number of E85-capable cars, more ethanol pumps on the horizon, and continued government pressure to get ethanol into every possible area. Still, industry insiders know all about these things, too, and if they're saying the glory days will soon come to an end, then I think we need to get ready for them.
[Source: LA Times]
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