Researchers warn on ethanol, industry collapse if E15 not approved

In Iowa, Farmgate.illinois.edu has published a review of the potential consequences should the EPA not extend the 10 percent ethanol blend limit to E15. “While the motoring public has not indicated it is ready to significantly increase its driving miles, the blend wall will depress profit for the ethanol industry, possibly cause more bankruptcies, and shut the door on cellulosic ethanol.”

The report cites Iowa State ethanol economist Bob Wisner’s assessment that the “birth of the embryonic cellulosic ethanol industry will be greatly at risk…The very large discount of ethanol prices to gasoline has resulted in depressed returns for ethanol plants. Some plants reportedly are now beginning to operate at less than full capacity or have shut down temporarily for maintenance.”

More on the story.

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Tags: ethanol, Illinois

Category: Producer News, Research