More US ethanol producers file for bankruptcy
US ethanol producer Renew Energy, based in Wisconsin, is one of a few producers in the US to file for bankruptcy so far this year.
Renew Energy will be sold amid falling prices for the grain-based fuel and rising costs for corn.
The producer listed both assets and debt of more than $100 million (€77 million) in Chapter 11 papers filed on 30 January.
The company, which last year had revenue of $184.2 million, sought court approval of a $2.5 million emergency loan from West Pointe Bank to replenish its diminishing corn supply.
Ethanol producers were forced to reduce capacity in January as volatile corn prices meant profit declined.
Producers have idled about 1.8 billion gallons, or 16%, of total US production capacity, the Renewable Fuels Association says.
Washington-based Cascade Grain Products halted production at its $160 million plant and filed for Chapter 11 bankruptcy on 28 January.
Earlier in January, Northeast Biofuels also filed for bankruptcy, citing a contractor’s failure to complete a plant properly.
In addition, Denco, of Minnesota, has stopped output at its 25 million gallon a year refinery, citing market conditions.
The renewable fuels standard or RFS requires the US to use 11.1 billion gallons of biofuels this year.
The Energy Independence and Security Act of 2007 mandates the US use 15 billion gallons a year of ethanol and 1 billion gallons of biodiesel by 2015. The plan also requires the use by 2022 of 16 billion gallons of cellulosic ethanol derived from non-food crops such as switchgrass and woodchips.
Renew Energy will be sold amid falling prices for the grain-based fuel and rising costs for corn.
The producer listed both assets and debt of more than $100 million (€77 million) in Chapter 11 papers filed on 30 January.
The company, which last year had revenue of $184.2 million, sought court approval of a $2.5 million emergency loan from West Pointe Bank to replenish its diminishing corn supply.
Ethanol producers were forced to reduce capacity in January as volatile corn prices meant profit declined.
Producers have idled about 1.8 billion gallons, or 16%, of total US production capacity, the Renewable Fuels Association says.
Washington-based Cascade Grain Products halted production at its $160 million plant and filed for Chapter 11 bankruptcy on 28 January.
Earlier in January, Northeast Biofuels also filed for bankruptcy, citing a contractor’s failure to complete a plant properly.
In addition, Denco, of Minnesota, has stopped output at its 25 million gallon a year refinery, citing market conditions.
The renewable fuels standard or RFS requires the US to use 11.1 billion gallons of biofuels this year.
The Energy Independence and Security Act of 2007 mandates the US use 15 billion gallons a year of ethanol and 1 billion gallons of biodiesel by 2015. The plan also requires the use by 2022 of 16 billion gallons of cellulosic ethanol derived from non-food crops such as switchgrass and woodchips.
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