The credit crunch might have been a good thing for the profitability of the US ethanol industry according to Bill Tierney, former Kansas State University grain marketing economist and former head of the U.S. Department of Agriculture wheat and feedgrains forecasting division in Washington, D.C.
"In early August 2007, the industry was well on its way to overbuilding, much as the U.S. biodiesel industry already has," Tierney said.
The credit crisis and declining ethanol margins dried up financing for 11 billion gallons of "probable" projects, he said.
It is an ill wind that blows no good.
Hattip to Ron Steenblik and his del.icio.us page