Indiana ethanol industry struggles as price, infrastructure problems mount

In Indiana, the Star-Press reported on the status of Indian’s struggling ethanol industry.  Five of Indiana’s six ethanol refineries opened in 2007 and six more are scheduled to open in 2008, but a lack of infrastructure to distribute ethanol has strained plant economics.

Earlier this month, VeraSun Energy is suspended construction of its 110 Mgy corn ethanol plant in Reynolds, IN due to the fall in ethanol prices. The company said it would restart construction in 2008.

A recent USDA ethanol transportation report showed that 75 percent of new orders for rail cars are for ethanol, but the manufacturing backlog has increased from 36,000 rail cars, up from 10,000 rail cars in the third quarter of 2005.

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