$150 million corn ethanol proiect in Michigan is “stalled”; county to refund $900K state grant

December 31, 2007

In Michigan, a $150 million corn ethanol project is stalled, and the city of Corunna will have to refund a $900,000 grant from the state government that would have assisted with funding.

The move follows the halting of construction by E85, among several that the company has reportedly stopped.

The construction halt is the latest in a long series starting this summer as corn prices soared and ethanol prices plummeted. Aventine, VeraSun, and Pacific Ethanol were among the high-profile companies canceling projects, but Agassiz Energy, Glacial Lakes Energy, Chippewa Valley and Alchem have all axed projects in the past few months, among others.

All companies said that the fall in ethanol prices were the cause of the decision.