|
Adams, NE | Its not going to happen. New plants must show a 20% reduction in greenhouse gases to generate RINS. Because of the stupid Indirect Land Use Change (ILUC), corn based ethanol plants do not qualify for a 20% reduction if built after 2008. Soooo, a newly built corn based ethanol plant will not be able to generate RINS. RINS are still worth 30 cpg in the open market, so your margins would be 30 cpg lower than a plant that sells product with the RINS attached. No one with any brain would invest in a new ethanol plant today because of this hurdle, regardless of nearby returns (deferred returns are substantially less than RIN costs anyway).
Additionally, there is enough corn based ethanol plants to cover the maximum amount of corn ethanol allowed by law in the original, non-amended RFS2. Another hurdle for a builder of a plant.
Do not get me started on the financing side of the equation.
| |
|
Anyone want to build an ethanol plant?
