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Concern Over Ethanol Plant Shutdowns

Concern Over Ethanol Plant Shutdowns

Photo: WNAX


Amid financial turmoil two Kansas ABENGOA ethanol plants have shut down. Nebraska Ethanol Board Administrator Todd Sneller says a number of factors led to that including low gasoline prices and reduced grain demand as well as a reduction in exports for both ethanol and distillers grains.

He says the recent policy decision by the EPA to not hike the RFS volume levels to the statutory level has not helped.

Sneller says besides the shutdown of the ABENGOA ethanol facilities there is close to $ 5 million that hasn’t been paid to both Nebraska and Kansas farmers for delivered corn to those plants. He says while this is a problem, the closing of those plants is not a trend.

Sneller says another problem with the ethanol plant shutdowns is that ABENGOA had been the recipient of some federal grants and now anti biofuel advocates will take advantage of that to push back against the ethanol industry.