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Despite waves of articles the past year about the staggering growth of the U.S. ethanol industry, in just the last few days many publications in corn-belt states are reporting that the boom may have gone bust.


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Remants of Hurricane Ike took a devastating toll on corn crops last month.
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Rising corn prices, falling gas prices, storm-triggered flooding and late corn harvests have caused or contributed to a host of ethanol plants closing and plans for others to be scrapped.


Among a recent spate of setbacks for the industry are refinery closures at Emerald City Ethanol in Harvey County, Kansas, VeraSun Energy in Linden, Indiana, Abengoa Bioenergy in Portales, New Mexico, and the circular filing of plans for a $200-million project in Belle Fourche, South Dakota.


An article in Hoosier Ag Today reports that with oil prices are approaching $60 a barrel, the profit margins for ethanol producers are shrinking. It also reported that the credit crisis is making capital harder for ethanol investors to come by and "the ethanol industry is facing some tough political times as the government subsidy for ethanol has come under attack from presidential candidate John McCain."


A piece posted at Gas2.0 notes that "every time the price of oil drops, the demand for that same product increases and the demand for alternate fuels decreases." The online publication has links to many ethanol businesses that have gone belly-up in recent weeks. 


The editors at Biofuels Digest contend that access to capital via "lawmakers who have the vision to see its proper role in a national energy solution, will be the key to ethanol's growth" in this country. The editors also said that industry leaders in the U.S. must do a better job of winning support for ethanol in Washington, D.C.


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Photo courtesy of tlindenbaum via Creative Commons license.

Tags: Alternative Fuels, Energy Companies, Ethanol, Abengoa Bioenergy, Corn, Emerald City Ethanol, Ethanol, John McCain, VeraSun Energy

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Is U.S. Ethanol Boom Over? Plant Shutdowns, Project Cancellations Beg Question was originally published by Green Car Advisor. Read the full story by clicking here.