30 Jan Economic hardship hits Wisconsin ethanol industry
Milwaukee, Wis. – Today’s announcement by Wisconsin’s largest ethanol producer, Renew Energy, LLC, that they have filed for Chapter 11 bankruptcy protection is a reflection on the harsh economic conditions facing a number of Wisconsin industries.
“The harsh reality is that there aren’t many, if any, Wisconsin ethanol producers making money right now,” said Joshua Morby, Executive Director of the Wisconsin Bio Industry Alliance (WBIA). “Our industry is still quite new – the first plant in Wisconsin was built in 2000 – and we’re going through a tough time in the business cycle.”
There are certainly a number of factors that are contributing to the downturn in the bio fuel industry, one of which is cheap gas.
“Wisconsin consumers have a short memory,” Morby said. “Right now, people aren’t thinking about $4 a gallon gas. The long term forecast is that gas is going to shoot up in price again, and when it does, the ethanol industry will be there to help relieve that burden on consumers by reducing our dependency on foreign oil and producing a cleaner burning, renewable source of automotive fuel that adds jobs and benefits the Wisconsin economy.”
The Wisconsin Bio Industry Alliance is a diverse group of businesses, environmental groups, and statewide and local organizations that have come together to build both public and legislative awareness of the Bio Industry in Wisconsin.
For more information about the Alliance, or to find out how to join, please visit our website.