Ethanol plant fails to sell for more than starting bid

An ethanol plant auctioned on 24 August in the US failed to sell for more than the starting bid due to its high selling price and complications associated with it.

Primary lender Cape Fear Farm Credit bid $34.5 million (€24.5 million) for the Raeford, North Carolina-based Clean Burn Fuels, anticipating a higher bidder would end up acquiring it. However this was not the case and Cape Fear is now the sole owner of the 60 million gallon a year ethanol plant and its contents.

Cape Fear ceased production shortly after operations began and the company filed for bankruptcy earlier this year, citing the high cost of corn. Additionally, issues with equipment had been hindering the plant, which meant it was not able to reach its full production levels.

Cape Fear is said be searching for a new buyer.