NEW YORK - The U.S. ethanol industry is about to break under the weight of the Trump Administration’s trade war with China and the surge in the number of small refineries exempted from the nation’s biofuel laws, Green Plains Chief Executive Officer Todd Becker said.
“Some plants will slow down, some will shut down, some will shut down forever,” Becker said late last week in an interview with Reuters. Becker said the industry has been undisciplined, continuing to ramp up production in the face of weak demand growth and growing supplies. He says the company has decided to cut production in the past, but this time it has the capital and operational plan to sustain weak or negative margins.
One trader said production needs to fall by about 10% or demand needs to increase by the same amount to help steady the market.The U.S. Renewable Fuel Standard , a more than decade-old law, requires refineries to blend corn-based ethanol into their gasoline to help farmers. The program also provides waivers to small refining facilities that can prove compliance would cause them financial harm.
If the CEO’s weren’t sucking all the money up for their salaries and bonuses, they’d be doing great.
Ethanol added to gasoline attracks moisture and is 30% less efficient than gasoline. The mandate should be abolished.
...good?
it's about time this industry was abolished!