A combination of high corn prices and low ethanol prices is what led to a decision to delay construction of a 55 million gallon ethanol plant in Erskine, Minn., according to Don Sargeant, president of Aggassiz Energy.
Sargeant says the company will start construction if there is a rebound in the price of ethanol. November ethanol futures are 40 cents lower than April's $2.00 and though a record corn crop is being harvested, prices remain high.
Aggassiz is not the first company to suspend construction due to current market conditions. Earlier this month VeraSun Energy Corp. stopped construction on a 110 gallon ethanol facility in Reynolds, Ind. BioFuel Energy Corp. put plans on hold for a third ethanol facility, and according to the Grand Forks Herald, Alchem Ltd. announced that they were suspending operations until corn and ethanol prices improved.