Six more plant delays, expansion cancellations, brings total to 12 in the past month as ethanol price drop bites the industry

In Illinois, three corn ethanol projects have been cancelled or delayed. Aventine Renewable Energy cancelled a plant expansion in Pekin, and Alternative Energy is facing financing delays for its proposed plants in Kankakee and Greenville. The Pekin project would have added 113 Mgy in production capacity.

In all, Aventine has suspended work on five projects with 565 Mgy in planned capacity.

The total of cancellations so far due to depressed ethanol prices has reached 12 projects in the past month.

BioFuel Energy announced this week that it will stop construction on a third new ethanol facility, owing to low ethanol prices. The company initiated a $7.5 million buyback of its stock in response to a 35 percent fall in its share price in the past 30 days. In Minnesota, Agassiz Energy announced a suspension of its $115 million ethanol plant near Erskine owing to financing difficulties associated with high corn costs and reduced ethanol prices. Last week, three firms suspended construction or halted production at ethanol plants in the Midwest. Glacial Lakes Energy’s plant in Meckling, SD, Chippewa Valley’s 40 Mgy plant in Benson, MN and the Alchem ethanol plant in Grafton, ND received the axe. All companies said that the fall in ethanol prices were the cause of the decision.

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