Despite billions in federal subsidies, ethanol, the snake oil of the 21st century, isn't economically viable. Of course it's not a viable energy source either, despite the specious claims made by corn farmers, agri-corporations, and Midwestern senators. But we're looking beyond the Midwest this evening, to California's agricultural heartland and the Modesto Bee, which reports on the latest ethanol failure.
Pacific Ethanol announced Friday that it will temporarily suspend operations at its production plant in Madera County beginning today, blaming "unfavorable market conditions" for ethanol production.
The plant is capable of producing 40 million gallons of ethanol per year. But falling gasoline prices and volatile production costs for the grain needed to make ethanol "have squeezed us from both ends," company spokesman Tim Raphael said.
The company has no timetable for reopening the plant, Raphael said. "We look forward to reopening as soon as market conditions allow."
About 40 people who work at the plant will be laid off temporarily until production resumes. "It's difficult for them, obviously," Raphael said. "That's why we're so anxious to get reopened and get back to work."
Sacramento-based Pacific Ethanol lost $54.9 million in the third quarter of 2008. The Madera plant is the largest such facility on the West Coast.
Related posts:
Ethanol alert: Former Iowa Gov. Vilsack to be named ag secretary
Ethanol responsible for 15 percent of Iowa's greenhouse gases
Ethanol bailout next?
Ethanol backlash in the Midwest
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1 comment:
Better to produce pork with corn.
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