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Kansas ethanol future at crossroads

KSAL Staff - September 8, 2013 7:11 am

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Ethanol producers say they are running up against market and regulatory pressures that are putting a crimp on the industry’s future.

Lower prices for corn helps with production, but experts say the industry is providing all the ethanol to satisfy government and market demands.

Dave Vander Griend, president of ICM in south-central Kansas, tells the Wichita Eagle that the ethanol industry won’t cease to exist but is stagnating and could lead to the eventual takeover by the large oil companies.

Mandates call for fuel to be blended with 10 percent ethanol and oil companies are required to purchase certain quantities each year. Those levels are being met, but demand for gasoline is down as motorists drive less and vehicles get better fuel mileage.

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