Ethanol plants based on food crops are taking a serious hit because of the price hike for grains and the flooding in the Mid-west that has wiped out a significant number of crops. In just the most recent news, Heartland Ethanol is tossing plans to build seven corn ethanol plants in Illinois, and even worse, they're dissolving the company - all due to feedstock prices. VeraSun Energy is delaying construction at two of their plants because of the flooding.
With corn passing $8 a bushel and a 10% drop in production over the last year, it seems that corn ethanol is finally reaching the end of its popularity (of what little it had left) and corn ethanol plants are either already in, or nearing the red without the prospect of getting funding thanks to the credit crunch.
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