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Environmental and Rural Development Impacts Conference, October 15-16, 2008, St. Louis, Missouri >
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http://purl.umn.edu/53504
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| Title: | Financing Growth of Cellulosic Ethanol |
| Authors: | Gustafson, Cole R. |
| Issue Date: | 2008 |
| Abstract: | The corn grain ethanol industry experienced rapid growth from 2005- 07. U.S.
financial markets obliged and supplied credit at reasonable cost and terms which facilitated this
expansion. Now, the biofuel industry is being challenged to nearly triple production under
recently passed federal legislation, 2007 Energy Independence and Security Act, in the midst of a
collapse of worldwide financial markets. However, the status of U.S. financial markets is in
question. Both existing first generation and prospective next generation biofuel plants are
demanding a large influx of capital to support adoption of new technological innovations. First
generation plants require the innovations to remain low cost producers in highly competitive
commodity markets. Second generation plants seek innovations to commercialize the production
of cellulosic and advanced biofuels. In either case, the ability of financial markets to supply
needed credit is unclear due to impediments that have reduced the borrowing capacity of biofuel
firms; uncertainty surrounding future industry performance benchmarks, tax provisions, and
implementation of current biofuel legislation; and the need for new risk management strategies
which protect firm margins in volatile economic times. |
| URI: | http://purl.umn.edu/53504 |
| Institution/Association: | Farm Foundation>Transition to a Bio Economy Conferences >Environmental and Rural Development Impacts Conference, October 15-16, 2008, St. Louis, Missouri |
| Total Pages: | 12 |
| Collections: | Environmental and Rural Development Impacts Conference, October 15-16, 2008, St. Louis, Missouri
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| GustafsonDr.ColeR..pdf | | 300Kb | PDF | View/Open |
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