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]

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