The last 18 or so months have been a bumpy ride for most ethanol companies and their investors. Many of the ethanol plants that were scheduled to begin construction were put on indefinite hold and some of the larger ethanol production companies have been staring down bankruptcy. That being said, the fuel remains a viable alternative to gasoline and many are predicting 2010 to be better year for the industry. A recent article in The Des Moines Register offers speculation on where ethanol demand may be headed this year.
The U.S. Energy Information Administration recently speculated that as the economy continues to recover in 2010 the demand for all fuel, including ethanol, will climb. Also, new state and federal regulations are taking place this year which will require more biofuel production…and even more strict guidelines could be on the horizon.
Being involved in the ethanol industry the last few years has not always been a smooth ride…for everyone from the farmer to the production companies. Let’s hope that the analysts are correct and that 2010 will show a correction in direction for this industry.
Read the entire Des Moines Register article here.
What are your thoughts on the state of ethanol? Are you optimistic for a turn around for 2010? Let us know at eric@loranda.com.
