Lingering drought impacts ethanol production

R&D Magazine
By SETH SLABAUGH - The Star Press - Associated Press
Saturday, July 21, 2012

Skyrocketing corn prices related to this summer's drought have helped to idle an Indiana ethanol plant in Montgomery County, while Cardinal Ethanol at Union City and POET Biorefining in Portland and Alexandria remain at full production.

Valero Energy Corp. idled its plant in Linden, between Lafayette and Crawfordsville, late last month but is keeping its 60 employees on the payroll and intends to re-start production before harvest.

"High corn prices driven by the drought have caused some ethanol plants to temporarily idle or reduce production," Matt Hartwig of the Renewable Fuels Association, an ethanol trade group in Washington, D.C., told The Star Press. "Ethanol prices have not kept pace given the overhang (ethanol surplus) in the market. It's made for some tough margins in the industry of late. The drought conditions will make it tough on all end users of corn and the market will ration supply accordingly."

Read more