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Ethanol Blog

Todd Neeley DTN Staff Reporter

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Monday 11/16/09

Aventine Weighs Future of Ethanol Plant Projects

Aventine Renewable Energy Holdings Inc. said in a bankruptcy court filing that it is trying to decide whether to sell or keep two uncompleted ethanol plants in Mt. Vernon, Ind. and Aurora, Neb., according to the Chicago Daily Herald. The two plants being built are designed to produce 220 million gallons.

Aventine stopped construction before filing bankruptcy. In the Chapter 11 petition Pekin, Ill.-based Aventine listed $799 million in assets against debt totaling $491 million.

Aventine has $30 million in secured financing from the holders of 75 percent of the $300 million in unsecured notes. First-lien lenders are owed $40.3 million.

(Chicago Daily Herald, Nov. 13, 2009)

(http://www.dailyherald.com/…)

DTN: Aventine could face significant difficulty in selling two unfinished ethanol plant projects. First, financiers have lost interest in putting money into more corn-based ethanol plants. Second, if Aventine sells the projects the buyer will face significant additional investment to bring the plants to fruition. The other option for Aventine would be to auction off the plants in parts, something that one company recently did with an unfinished ethanol plant in Nebraska. Either way it will be difficult for the Aventine projects to be completed. (Todd Neeley)

Posted at 10:40AM CST 11/16/09 by Todd Neeley

Comments (7)

Aurora, Neb. is a great location in the middle of corn country and right on one of the BNSF main lines across Nebraska. Great Rail connections for shipping ethanol east, west, north or south out of Lincoln Nebr. BNSF Yards. Also connects to UP main lines at Grand Island Nebr. Did I mention lots of feeder cattle too!

Posted by Thomas Blazek at 11:59AM CST 11/16/09

I forgot one of the most important things of all, just 15 miles or so from I-80 across Nebraska. Lots of potential for local Ethanol consumption along the Interstate.

Posted by Thomas Blazek at 12:04PM CST 11/16/09

Thomas B. illustrates his total lack of animal ag. Thomas, young FEEDER cattle consume mostly grass and hay, not corn. It's FED cattle in FEEDLOTS that use the corn.

Posted by THOMAS ELAM at 9:48PM CST 11/16/09

Ha Thomas Elam, I guess you can't deny what a great location Aurora is for an Ethanol Plant, so you go to work on semantics about what feeder cattle are. Well maybe I didn't use the correct term for cattle on supplemental feed. You used the term "young" not me. Anyway I wish I could buy and finish the Aurora Plant. Last time I checked there were more cattle in Nebraska than People. Maybe that’s why they call it: "Nebraska The Good Life"!

Posted by Thomas Blazek at 10:12PM CST 11/16/09

Hay Thomas Elam, Copied this off a Nebraska web site, Just for You! Four Times as many Cattle as People January 2006 figures illustrate that Nebraska continues to have far more cattle than people. Cattle outnumber Nebraskans nearly 4 to 1. Cows number 1.94 million, versus Nebraska residents who number just 1.7 million. The cows and the 4.7 million head that are annually fed in Nebraska total nearly 6.64 million cattle. Why so much Beef in Nebraska? Nebraska has a unique mix of natural resources. Cattle turn grass from 24 million acres of rangeland and pasture, more than one half of Nebraska's land mass, into protein and many other products for humans. The land grazed by cattle allows more people to be fed than would otherwise be possible. More than one billion bushels of corn are produced here each year, 40% of which is fed to livestock in the state. Cattle producing families, who make their living from the land, have a strong incentive to protect their animals and the environment

Posted by Thomas Blazek at 10:29PM CST 11/16/09

Thomas B. your are exactly right about the historical role of cattle in Nebraska. However, looking forward, the future is not so bright. Higher feed costs since 2005 are causing losses in the feedlots that are "blowing back" on feeder cattle prices and will, long term, mean fewer cows, fewer cattle operations, and a smaller role for cattle in the Nebraska economy. If you build more ethanol plants you reduce the amount of corn available for the feedlots there, and put even more downside pressure on the local cattle economy.

Posted by THOMAS ELAM at 8:34AM CST 11/18/09

While ethanol plants reduce the corn volume by removing the starch, the protein feed value is still there for cattle feed in the Distillers Grains at a reduced price to raw corn. I have also read that the Distillers grains are also easier for the cattle to digest. I thought distillers grains were a plus for the cattle industry especially in places like Nebraska over states like Texas that don't have a significant distillers grain supply at a reduced price to corn.

Posted by Thomas Blazek at 12:34PM CST 11/18/09

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11	12 Aventine Races to Finish Ethanol Plant Racecars run Faster, Cleaner on Ethanol Study Finds Lowland Switchgrass Varieties Outperform Upland New Mobile Biofuels Processor Developed University of Toledo Receives Grant to Study Algae Biofuels 4 more...	13 EPA Considers Slash in Mandate for Cellulosic Ethanol Didion Ethanol to Help Water Quality as Part of Agreement Archer Daniels Midland Inaugurates Nebraska Ethanol Plant Proposed Wisconsin Ethanol Plant Plan Stalls Oakfield Capital Acquires Biofuel Company from BP	14 Group Pushes for E100 Ethanol Exports Down 58 Percent in May Ethanol tax Break may Ride on US Energy Bill Pacific Ethanol Shares Take Hit Ethanol from Waste Means big Dollars 1 more...	15 Greene: 'CBO Report Shows Folly of Corn Ethanol tax Credit' Ethanol Group Backs Phase out of Blenders Credit Ethanol Blamed for Toro Snow Blowers Recall Blog: 'They Need an app for Zero-Ethanol Fuel'	16 Cellulosic Ethanol Industry: BP's Verenium Acquisition a 'Good Move' Ethanol Industry Scrambles to Keep Incentives EPA Still Betting on Cello Energy to Meet Next-gen Biofuel Target Novozymes, Dedini to Produce Cellulosic Ethanol in Brazil	17
18	19 SDSU Researcher Studying Reuse of Ethanol Enzymes Huge Ethanol Refinery Opens in Denmark DOE: Ethanol Blend Wall to Hurt Corn Prices Pipeline Project Gets Boost Livestock, Poultry Sectors Call for End of Ethanol Subsidies	20 BP Acquires Verenium's Cellulosic Biofuels Platform Danisco Sues Novozymes in London Court Over Enzyme Patent U.S. Automakers on Track for More Ethanol Vehicles Study Shows Ethanol Production, Corn Demand Will Grow With or Without Subsidy and Tariff	21 Ethanol Production Restarts at Sunoco Plant Tanzania Expert: Cassava Can Help Beat Poverty Green Plains, BioProcess Algae to Expand Algae Project WSU Works on a Better Jet Fuel House Committee Weighs Cut of 20 Percent in Ethanol Subsidy	22 Dire Warning Issued for Loss of Ethanol Subsidy State Senate Candidates in Minnesota Oppose Ethanol Subsidy Arizona Sees Increase in Ethanol Fuel Violations Ethanol Elevates Kinder Morgan's Second Quarter	23 Ethanol Opponents Form Coalition to Oppose E15 Oil Spill Puts Target on BP's Back FAO Warns Against Jatropha Biofuels Hype Commercial Airlines Hope to get 1 Percent of Fuel from Biofuels by 2015 Glacial Lakes Energy Adds Corn Receiving Station 1 more...	24
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