YANKTON, S.D. (KELO.com) — The ethanol industry in America is facing a disaster due to a perfect storm.
That’s according to American Coalition for Ethanol CEO Brian Jennings. He says it’s likely over 2 billion gallons of ethanol production will be lost as people aren’t driving due to the COVID 19 pandemic and social distancing. He says an oil price war has added to the woes.
He says most if not all ethanol plants are losing money and it isn’t going to get any better any time soon.
Jennings says most ethanol producers were already under pressure at the beginning of the year due to the trade war and the small refinery waivers which had destroyed demand.
He says ACE is seeking any federal help they can get for short term relief for their industry.
Jennings says in the long term an economic turnaround is needed so that drivers can get back on the road and demand can pick up.
(Jerry Oster, WNAX, contributed this report.)
