Wisconsin Ethanol Plants Feeling Pinch From Cheaper Gas

As the price of gas has dropped across the nation so too has the price of ethanol. That means tighter profit margins for Wisconsin’s nine ethanol plants.

Nationwide, gas prices are the lowest they’ve been in seven years according to petroleum analysts at Gasbuddy.com. In many places a gallon costs the same or less than a gallon of ethanol, which has traditionally sold itself as the low cost alternative to gasoline.

Spokesman Josh Morby with the Wisconsin Bioindustry Alliance, a trade group for state ethanol plants said his members are feeling the pinch.

“Margins for ethanol are modest at this time,” said Morby. “I think that plants that have higher debt could be facing more of a challenge than plants with no debt.”

Morby added that more established ethanol plants like Fox River Valley Ethanol in Oshkosh and Ace Ethanol in Stanley can also supplement profits by selling byproducts like animal feed and corn oil.