Central Bio-Energy, LLC (CBE), a Nebraska-based firm, announced today that it plans to invest more than $500 million to build three 100 million-gallon/year ethanol plants in Seward,Howard and Chase counties in Nebraska. The announcement was made in the Nebraska State Capital Rotunda in Lincoln. These plants will employ 150 full-time staff, with combined annual payroll in excess of $6 million. This investment will make CBE one of the leading ethanol producers in Nebraska, officials said. Projected annual revenues, when all three plants are operational, will approach $600 million.
Brett Frevert, chief financial officer, said
“Each plant will purchase approximately 40 million bushels annually, or 120 million bushels in total providing a tremendous boost to the local corn markets.”
So the farmers will be happy. What will taking 120m bushels of corn out of the market for every 300 m gallon/year production do to the price of corn?