Green Plains swings to profitability; equilibrium returning to ethanol market, says CEO

In Nebraska, Green Plains Renewable Energy announced a net income in the second quarter of $627,000, compared to a loss of $1.2 million in the corresponding period last year, confirming that recovery is taking place among major ethanol producers.

The company, which has 480 Mgy in capacity, said that the 1.5 billion gallon increase in ethanol mandated under the Renewable Fuel Standard for 2010 was creating optimism, despite a bad financing market and flat demand for gasoline.

Green Plains confirmed that, after significant oversupply problems, ethanol supply and demand are now in equilibrium. The company produced 77 million gallons in Q2, compared to a total capacity of 120 million gallons per quarter at its six plants. Capacity was increased by 45 percent in the quarter with the purchase of two plants in Nebraska, and the company confirmed that it expects to increase production in Q3 to more than 100 million gallons.

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