This has been a blustery year for producers of ethanol.
First, the industry took a hard hit due to the recession. Then gas prices fell. Same with the cost of corn.
But as the year ends, things seem to be looking up.
Today producers are experiencing the exact opposite conditions. Biofuels Business reports that corn is cheaper, the price of gas is higher, and producers are making better decisions.
And it does appear that companies are more bullish. Valero Energy Corp. of San Antonio, Texas, the largest oil refinery in North America, purchased seven plants as well as a development site from now defunct VeraSun. Valero said that it might buy more renewable fuel plants.
It also appears that consumers are bullish on ethanol. According to a study by the University of Wisconsin in Madison, more than 60 percent of respondents use and support the production of ethanol. A study in Iowa by that state’s Renewable Fuels Association found that ethanol and biodiesel refineries add nearly $12 billion, or about 9 percent, to Iowa’s gross domestic product. Moreover, a boost in the demand of renewable fuels would provide much needed help to the state’s economy as a whole.
Finally, the current environment which includes a government that supports and concentrates on green jobs and the use of renewable energy bodes well for the immediate future.