U.S. Ethanol Outlook: Plenty of Supply and Demand, But Profits Elude Producers

SUGAR LAND--April 9, 2013--Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Jay Brunson invokes Willie Nelson when he considers the strategic challenges facing ethanol producers: "Mama, don't let your babies grow up to be ethanol producers." A challenging business during the best of times, the loss of federal subsidies and sharply higher corn prices have made profitability elusive, if not impossible. Brunson, Industrial Info's vice president of research for Alternative Fuels, said that the outlook for corn ethanol is grim, and the prospects for cellulosic ethanol is worse.