Ethanol makers fear 'blend wall' is near

Des Moines Register
By DAN PILLER • dpiller@dmreg.com • April 18, 2010

Just when Iowa's 39 ethanol plants had settled into regular profitability, demand for the fuel is waning and red ink is returning.

Motorists aren't turning away from the fuel. In fact, about 80 percent of U.S. gasoline is blended with ethanol.

The industry is running into the "blend wall" - the theoretical limit of the amount of ethanol that can be mixed with gasoline. Most gasoline can contain a blend of no more than 10 percent ethanol.

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