The End of Ethanol? - 3/04/08

Ethenex Energy a Basehor, Kansas based ethanol plant filed for Chapter 11 last month. This company started two years ago when corn was cheap and ethanol was soaring. That was when there was an all out rush to build ethanol plants. But today with the price of corn doubling to $6 a bushel and the price of ethanol falling, Ehtnaex has been forced to file for Chapter 11.

Farmers in the Midwest are reporting that ethanol plants under construction have ceased or the plants are declaring Chapter 11. The rush to produce ethanol from corn may be ending fast.

With corn prices expecting to increase this year, this will put additional pressure on the ethanol producers.

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