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06.11.2008 10:04 am

$3.9 million gets ethanol plant going

St. Louis Post-Dispatch
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Show Me Ethanol, which said in April that it needed more money to finish its plant in Carrollton, Mo., raised $3.9 million from 40 investors and now has the plant up and running.

Show Me raised the money last week, it disclosed in an SEC filing. The investors will get 9 percent interest and will have a secured interest in the plant. Ray Carroll County Grain Growers made the largest single investment, $1 million.

Show Me also got $3 million added to a revolving loan from FCS Financial. The plant in Carrollton has the capacity to produce 55 million gallons a year.

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4 comments

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So “Show Me Ethanol” can now produce more of its inefficient fuel and further help drive up food prices. Great. This article should come with a note on how much water and energy is required to create a gallon of biofuel.

— Andrew
3:55 pm June 16th, 2008

Subsidizing the production of ethanol has served to benefit only one group - corn growers. It has driven up the cost of the gasoline to which it is added, the cost of feed for cattle, pigs and chickens, and so on up the food chain. It takes more than three units of primary energy to produce two equivalent units of ethanol. This business model isn’t broken; it doesn’t rise to the level of being a business model in the first place.

To paraphrase, “It’s the economics, stupid!” When will our politicians gather the intestianl fortitude to put public policy and welfare ahead of special interests and political gain?!!

— Curtis Shepard
10:09 am June 17th, 2008

Kit Bond should introduce legislation outlawing ethanol production since he (likely) was instrumental in making ethanol part of federal public policy. Show me Ethanol and its ilk should be made illegal.

— jan
4:31 pm June 17th, 2008

While I agree that ethanol may be helping in driving up the cost of corn, ethanol is only a small part of the food problem. The largest contributor to the increase in food cost is oil and oil has been driven up by the low valuation of the dollar and speculators. Fix those problems and you will see your food costs come down substantially quicker than you would by getting rid of ethanol. Infact if you got rid of ethanol your gas cost would increase and corn would decrease some but, again corn is a commodity and can be driven up by speculators.
I am not saying that ethanol is the solution to our oil problem but I dont think it is as big of a problem as some seem to think.

— chuck
10:05 am June 18th, 2008