Thursday, June 12, 2008

Straw in the Wind--Biofuels?

From Agweb:
A 45-million-gallon biodiesel plant near Evansville, Wis. was planned to open this fall. But, plans have changed.
North Prairie Productions, LLC has discontinued the construction of their biodiesel project. The reason: high commodity prices.
According to information published by the North Prairie Productions’ Board of Directors on their Web site, the rising costs of the commodities needed to produce biodiesel eroded their profit margin in producing the fuel.
As corn prices set records because of the bad weather, we may see more of this. Ethanol has prospered, I think, not only because of the subsidies but because oil prices have soared. If corn prices stay high and oil recedes, ethanol might have problems. [Warning: one of many subjects about which I know nothing.]

No comments: