Biofuel Backfire? Ethanol Plants Lining Up In Bankruptcy Court

Soaring corn and soy prices on top of rising construction costs and tight credit markets have pushed about a dozen U.S. biofuel plants to file for bankruptcy protection, experts said.

Prices for corn, the feedstock for most U.S. ethanol plants, hit fresh records above $8 per bushel this week as floods this month in the Midwest have caused billions of dollars of crop damage.

"Corn prices are making the feasibility of ethanol plants every day more and more questionable," said Alex Moglia, president of Moglia Advisors in suburban Chicago, which helps biofuel companies restructure.

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DexDiamonds - 7/1/2008 1:56:36 PM

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This is just why more funding should go to ethanol based on plant waste.

EnnNorak - 7/1/2008 6:38:01 PM

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Several companies are already pursuing microbial processes that make biofuels from all sorts of waste. At least one such process involves the removal of CO2 from the atmosphere in a process that produces a gas that gets converted to a butane-like fuel. Non-food biofuel production is possible from the jatropha plant. This is a warm-climate plant native to India but can probaly be genetically engineered to withstand mild frost so that it can be grown in the southern states like Florida. The U of Florida is already investigating this matter.

Bored - 7/1/2008 4:12:36 PM

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I want someone to convert landfill and trash waste.

WorldofLuxury - 7/1/2008 5:04:36 PM

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Exactly! I thought the fact that they could make ethanol out of certain wastes was just plain awesome.
Sure ethanol engines might pollute more, but look, they provide us w/ slightly more landfill space and extra POWER!!!

Spectator - 7/2/2008 1:31:42 PM

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All I have to say is that this is a great blessing from a great tragedy. Hopefully this will lead to no more food based bio-fuels.

Honestly, I mean really, who thought this was a great idea for the country? I'm just glad to see that crop prices increased so much so that the subsidies that E85 was recieving to stay lower than regular gas cant keep up. Now mabey the lie that Corn/Soy based Ethanol is cheaper than gas, can finally be put to rest.