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Ethanol executive sees brighter days ahead

Green Plains' ethanol plant at Shenandoah, Iowa

Green Plains’ ethanol plant at Shenandoah, Iowa

Ethanol producers have been dealing with low profit margins for several months. But the president and CEO of Omaha-based ethanol producer Green Plains Inc. sees brighter days ahead.

Todd Becker says one of the reasons for his optimism is the growing number of gas stations that are offering E15.

“To give you an example, Kum & Go has announced 110 stations—and we’re starting to see others announce stations in that type of range—hundreds at a time are making the switch,” Becker says.  “Our outlook is that we will do somewhere between 150 million to 350 million gallons of E15–more towards the 250 million gallon range–in 2017.”

There are other reasons to be optimistic as well, Becker says.

“Better demand globally, better demand domestically with E15, higher energy prices overall, potentially a 93 million acre corn crop with any kind of trend-line yield, and a tighter RIN market, give us a good fundamental environment going into late 2016 and early 2017.”

Becker commented Tuesday during Green Plains’ first quarter 2016 earnings call.

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