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Plans for ethanol plant on hold.
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[quote]QUOTE: <i>Originally posted by farmer03</i> <br /><br />[quote]QUOTE: <i>Originally posted by oltmannd</i> <br /><br />If we planted every acre possible for ethanol production, the total would not supply even 1/3 of the total transportation fuel requirements. There's not enought THERE there, though it does help. <br />[/quote] <br /> <br />I believe ethanol is touted more as an ALTERNATIVE fuel source, not a REPLACEMENT fuel source. I'd say it's more of a stepping stone in the path to get off the OPEC teet. I really don't see why there are so many naysayers. It creates a few jobs here and there, keeps the construction folks in work, creates some traffic for your precious (or hated) railroad(s) and creates more markets for all this GMO corn we have in this country that no one else wants. <br /> <br />Sure, in this particular case someone ***ed up, but how often does that happen? <br />[/quote] <br /> <br />Ethanol plants have the potential to be very good for railroads. The traffic flowing in both directions is one example and the fact that ethanol cannot move by pipeline another that really make rail the most efficient way to transport it. Barges may be a bit more efficient on certain routes, but they are constrained by the river system and other navigable waters. <br /> <br />The problem is that ethanol has never been needed on such a massive scale and there is a gold rush mentality to many of the investment groups in terms of setting up these plants. Often these folks, in their hurry to cash in, forget the costs and realities of transportation and logistics. They are indiscriminately looking for sites all over. Those that build near sources of supply, such as corn or near customers such as refineries or major fuel terminals will likely survive as they have large transportation bills in one direction only. Others built where both corn and ethanol must travel long distances to reach the plant or the markets respectively will not be able to compete over the long term as they will have higher transportation costs and other issues. <br /> <br />So, the answer is that yes, these mistakes do occur and will continue to occur until the gold rush on ethanol ends and the less savy players are shaken out... <br /> <br />LC
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