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Ethanol Plants Diversify to Survive

Some facilities are increasing production of higher value co-products, making cellulosic ethanol, and cutting costs

File photo
File photo

Despite the dismal economics that have plagued the U.S. ethanol industry for the past year-and-a-half, some plants are staying the course by diversifying their revenue streams and bolstering their bottom lines by increasing their production of higher value co-products, making cellulosic ethanol they can sell for a premium, and cutting costs to be more efficient.

Successful Farming reports the extra measures being taken by these ethanol plants have let them maintain production at or near capacity while other plants have shut down or cut back severely on production.

The U.S.-China trade war, export sales have been hurt, and the SREs issued by the Environmental Protection Agency have cut domestic ethanol demand.

Read the full article at Successful Farming.

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