The biofuel goldrush may be petering out, says The New York Times, along with hopes of a new future for rural America.
Companies and farm co-ops have built so many distilleries so quickly that the ethanol market is facing a glut, in part because the means to distribute it have not kept pace with production. The average national ethanol price has plunged 30 percent since May, with the decline escalating sharply in the last few weeks of September.
"While generous government support is expected to keep the output of ethanol fuel growing," writes NYT's Clifford Krause, "the poorly planned overexpansion of the industry raises questions about its ability to fulfill the hopes of President Bush and other policy makers to serve as a serious antidote to the nation’s heavy reliance on foreign oil." ::The New York Times