Proposed list of Ethanol plants
Each year, the EPM staff compiles the most comprehensive list of proposed ethanol projects—those between conception and construction—that we can verify. Over the years, some of these projects have disappeared, some have been on the list several times and others are producing ethanol. In 2008, the list’s fifth year, EPM offers updates on 118 projects representing nearly 8 billion gallons of annual capacity.
This year’s list comes at a time when many in the industry are dealing with an uncertain economic landscape and possibly an uncertain future. Raising equity has been a large concern for future producers, and a number of the projects listed here reported significant delays and challenges associated with funding their respective plants. There are indications that with the passing of the Energy Independence & Security Act of 2007, investors and bankers may begin to view the market with optimism instead of skepticism.
The increasing cost of building materials is another major concern for future producers. Steel and copper prices are rising, and some contractors are receiving letters from steel suppliers announcing increased prices for structural and reinforcing steel. “AK Steel (Corp.) has upped its spot selling price for hot-rolled coil $30 per net ton, effective immediately, thereby bringing prices to $700 for April shipments,” according to Institute of Scrap Recycling Industries Inc. Price increases are blamed on increases in the cost of raw materials and energy.
