Nebraska Ethanol Plant Shutdown for Now
An eastern Nebraska ethanol plant has shutdown production for the time being.
Valero Energy has stopped production at its plant in Albion because it is unable to produce ethanol profitably at this time.
Company spokesman Bill Day says that the margins are so low that the plant can't continue to operate. The company had previously shut down the plant in June because of the record-breaking high corn prices.
In mid-September, once the corn prices had dropped back down, the plant was able to start production back up. However, the drop in corn prices does not seem to have improved profit margins and the plant is going back into idle mode.
Falling gasoline prices and smaller demand may be a factor in the low margins.
Day says Valero plans to restart the Albion plant when margins improve.