ADM and Green Plains switch to potable and industrial ethanol to reduce glut

In Illinois, ADM and Green Plains as well as potentially others are converting some of their fuel ethanol production to potable and industrial ethanol in an attempt to reduce the supply glut currently plaguing the market. ADM’s shift alone will remove 100 million gallons from the market but it’s only a fraction of its 1.8 billion of installed capacity or the country’s 16 million gallons of production. GPRE on the other hand idled 50 million gallons of production during Q2 and will transition its York plant to industrial and eventually potable ethanol following margins of just 7 cents per gallon compared to 15 cents last year.

Green Plains: The Digest’s 2015 5 Minute Guide