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Quite a year for ethanol

“2009 was sort of ‘The Tale of Two Cities.” That is how Bob Welch describes what happened to the ethanol industry this year. Welch has The Welch Group, a government relations firm which represents a number of ethanol interests at the state capital in Wisconsin.  He notes the industry was in the midst of collapse at the start of the year and has rebounded modestly by the end of the year, “I think we are going to see a strong 2010.”

There are nine ethanol plants in Wisconsin and all are running although not at full capacity. The largest, Renew Energy was recently sold at a bankruptcy auction where there were four bidders. Welch says there are a few strategic investors interested in ethanol plants, “Because they do see the upside.” However, he says the “guys with the big money are still being scared off by the headlines that are less than a year old.” Welch thinks the fact that Valero Energy, an oil refinery company is buying ethanol plants should prompt more confidence from other potential investors.

He also believes the E-15 blend rate will be approved this summer and that will be good for the ethanol industry as well.

Bob Welch talks about the industry:

Welch