About 12 small to midsize biodiesel and ethanol plants have declared bankruptcy in recent months, as the price corn and soy oil (the two primary feedstocks)push to record highs according to a Reuters report.
Renova Energy LLC filed for bankruptcy last week. The 20 million-gallons-per-year (MMGY) ethanol plant the company is buidling in Idaho is unfinished.
Kansas based Ethanex Energy Inc. declared bankuptcy in March.
Big ethanol companies are feeling the pinch, too. Last week VeraSun Energy Corp. (NYSE: VSE) one of the nation’s largest ethanol producers announced that it will delay startup operations at three new 110 MMGY facilities.
"Corn prices are making the feasibility of ethanol plants every day more and more questionable," Alex Moglia, president of Moglia Advisors in suburban Chicago, told Reuters. His company helps biofuel companies restructure. He said he believes more bankruptcies are on the way.
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