星期一, 14 7 月, 2025
Home PV Markets Dismal ethanol profits should improve this year

Dismal ethanol profits should improve this year

NEW YORK (Reuters) – U.S. ethanol producers have suffered dismal margins in recent months but profits should improve later this year as companies abandon or delay plans to build new distilleries.


"There may be some light coming at the end of this tunnel," Mark Flannery, an analyst at Credit Suisse, said in a teleconference on Wednesday.


Amid generous government incentives, the U.S. ethanol industry went on a building binge over the last year that boosted capacity 50 percent to 8.5 billion gallons per year (gpy).


That led to a supply overhang of the alternative fuel that has pressured margins to as low as 15 cents per gallon, much thinner than last year at this time.


But the pace of new distillery builds has slowed on tighter credit markets, more expensive steel and other building materials, and record prices for U.S. ethanol feedstock corn.


Archer Daniels Midland (ADM.N: Quote, Profile, Research), ConAgra (CAG.N: Quote, Profile, Research) and private company Poet, for instance, have delayed or canceled plans for ethanol distilleries this year. Late last year at least four others did the same.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

India will add 8,500 MWh of storage within the next two years

India Central Electricity Authority Chairperson Ghanshyam Prasad said on Wednesday that 3,300 MW of Battery Energy Storage System (BESS) projects are in the pipeline...

Coal giant snaps up solar thermal project in landmark deal for long duration storage technology

AGL, Australia’s biggest coal generator, has snapped up a newly approved solar thermal project in South Australia, adding to its options for long duration...

Al Kharsaah: A Pioneering Solar Power Plant in Qatar

Located 80 km west of Qatar's capital, Doha, the Al Kharsaah Solar PV Independent Power Producer (IPP) project is the country's first large-scale solar...

OMV Petrom Buys 50 Pct Stake in Gabare Solar Project

OMV Petrom S.A. has acquired a 50 percent stake in the Gabare solar project from Enery Element, a large-scale project in Byala Slatina, near...