Is ethanol dead? asks articles after slew of project nixes; our view: “capitol”, not “capital”, the key

Is ethanol dead? asks articles in Gas2.0 and Hoosier Ag Today, noting the rising tide of ethanol plant shutdowns or project cancellations. Gas2.0 highlights terminations at Emerald City Ethanol in Kansas; a plant in Mina, SD; the Abengoa plant in Chesterfield, MO; a $200 million project in Belle Fourche, SD, Plus, the dry-up in lending markets, collapse in gasoline prices and late harvests prompted by last minute downpours that have prompted corn shortages.

Hoosier Ag Today focuses on the VeraSun closure in Montgomery County, IN, and the attack on ethanol subsidies led by John McCain. Hoosier Ag Today writes “Those who survive will have to have the skills and the access to capitol to compete.” That’s a misspelling of capital, but it makes an unintended point about political clout.

Our view: ethanol is still a young, and strategic industry, and no more able to pay for itself and no less important than any infant. Access to “capitol”, that is lawmakers who have the vision to see its proper role in a national energy solution, will be the key to ethanol’s growth. For industry leaders, preparing plans to compete against Brazilian ethanol are required, for political support of R&D and the renewable fuel mandate is far stronger than support of blender credits and tariffs.

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