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December 03, 2007 | Jim Lane | Comments 0

E3 Biofuels files for bankruptcy; cites mechanical problems and boiler explosion as key factors; “closed-loop” plant was hailed at June opening as next step forward in biofuels

In Nebraska, the E3 BioFuels plant has filed for bankruptcy after mechanical problems made the rate of production unprofitable. The plant has shut down production pending reorganization.

The plant, which opened in June, was one of the first to use a “closed-loop” system where methane from 28,000 head of cattle was used to provide power to the plant, and distillers grains from ethanol production were fed to the cattle.  A boiler explosion was blamed primarily for the loss in production capacity.

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