Ingredion Inc has revealed that it has stopped ethanol production at its manufacturing facility in Cedar Rapids, Iowa.
This makes it the latest US biofuel company to cut ethanol output after the coronavirus pandemic has limited demand for fuel.
Last year Biofuels International reported how a biofuels plant in Georgia would not resume production while other facilities in Iowa and South Dakota had also shuttered due to the fall in demand for fuel.
The coronavirus pandemic battered the US ethanol industry, at one point halving its production capacity. Production capacity as of January 1, 2020 was 1.13 million barrels per day, according to the US Energy Information Administration.
Though the Cedar Rapids facility will continue to manufacture industrial starch, Ingredion decided to stop ethanol production because of current market conditions.
Margins to refine ethanol in the Corn Belt have fallen over the last two months, sinking to near the lowest level since April, new data has showed.
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