Ethanol Producers Benefit From Tax Credit Extension - News, Weather and Sports for Sioux City, IA: KCAU-TV.com

Ethanol Producers Benefit From Tax Credit Extension

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By: Scott Larson
slarson@kcautv.com

The renewable energy industry has received a shot in the arm with the president signing the Fiscal Cliff bill into law. The ethanol industry was holding its breath alongside those in the wind energy sector leading up to the Fiscal Cliff. As part of the sweeping changes, critical tax credits for the ethanol industry were due to expire. But the industry received a big break when the bill was passed including those tax credits.

While the new bill will help ethanol plants continue operations, it's providing little comfort for Eamoun Byrne, the CEO of Plymouth Energy in Merrill, IA. Eamoun says, "The common theme among all the bills was the temporary nature of all of them."

Plymouth Energy is looking at expanding into cellulosic fuels, but without long–term certainty, it makes for tough decisions. The equipment to expand requires a commitment in the range of one hundred million dollars. Eamoun points to the demand for ethanol fuels as an indicator for a bright future, saying, "Ethanol is here to stay. The fuel that you and I use on a daily basis contains ten percent ethanol. We're producing in the region of thirteen billion gallons on an annual basis. That's eliminating thirteen billion gallons of foreign imported oil."

But with the lack of long–term support, things remain up in the air. Eamoun says one thing that could really help them out is a good crop of corn – it would offer greater stability after last year's drought.

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