$350 million Albany Renewable Energy project faces corn, power, natural gas cost hurdles

In New York, Albany Renewable Energy is facing challenges on its $350 million ethanol plant in the Albany Port District, based on reduced margins from ethanol operations and rising construction costs. In addition to the fast-rising price of corn, ethanol production utilizes 35,000 BTUs of natural gas per gallon produced, and 1.1 KWh of electricity, and costs for both are under pressure. The Albany plant was designed to produce ethanol as a substitute for MTBE, which reduces smog when combined with gasoline but has proven to be a carcinogen.

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