Corn drought pushes ethanol producer in potential sale

It has been reported that an ethanol company located in south Minnesota, US may have to sell its plant.

Denver-based Biofuel Energy was a victim of the long drought that affected US corn availability and prices last summer and it shut down the plant, which can produce up to 115 millions gallons a year, in September as it became ‘unprofitable’.

‘When those corn prices rise that takes a big chunk out of the profitability for the plants,’ Paula Emberland from consulting firm Christianson and Associates was quoted as saying. ‘That's about 85-90% of the plant's overall expense.’

The biofuel producer also owns a plant in Nebraska that can also produce 115 million gallons, but it is unclear whether the company is considering selling both facilities or just the one in Minnesota.