Diamond Ethanol temporarily halts ethanol production due to market conditions

In Texas, Conestoga Energy Holdings, LLC, announced that it is temporarily halting production at Diamond Ethanol, LLC located at Levelland, Texas.

“Given current ethanol production economics, we felt it in the best interest of our company and the industry to take gallons off the market until demand is comparable to supply,” said Tom Willis, Chief Executive Officer of Conestoga Energy Holdings.

“The domestic ethanol market is currently out of balance, with more supply than demand. While year-to-date exports have been robust, they are struggling to keep up with increased production. We applaud President Trumps support of year-round sales of E15. This is a great step in increasing domestic demand, but it will take time to build the infrastructure needed to materially affect this increased production. In the meantime, this increase in supply has had a major impact on profitability resulting in lost revenue and compressed enterprise values within our industry. Crush economics and local crop availability will dictate when we bring the Levelland plant back online,” he said.