American biofuel plants filing for bankruptcy protection

This is not the time to be betting on first-generation biofuels. Add up the increasing cost of feedstocks and an overall tough economy and it's no great surprise that "going yellow," as it were, is not the easy path that some made it seem a year or so ago. The reality is hitting home. According to Reuters, about a dozen biofuel plants across the U.S. have filed for bankruptcy protection thanks to corn shooting up to $8 a bushel and ethanol's "miserable profit margins." The affected plants are mostly small or mid-sized facilities, a biofuels expert told Reuters, and he said he expected more to announce bankruptcy soon.

On top of the financial problems, many ethanol plants are only operating at 50 percent capacity and previously-announced plants are being stalled or stopped completely. Who knows how much longer blending E85 into gasoline at the pump will be a way to save a few bucks.

[Source: Reuters]

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