06.25.2008 3:48 pm

K.C. ethanol firm will disband

St. Louis Post-Dispatch

Alternative Energy Systems, a Kansas City company that was building ethanol plants in Boone County, Iowa, and Kankakee, Ill., told the SEC today that it plans to go out of business. It is the latest of several biofuel firms damaged by high corn prices, high construction costs and tight financial markets. Last week, Tennessee-based Heartland Ethanol canceled plans for seven Illinois ethanol plants and said it would disband as a company.

AES blamed “an inability to successfully raise funds for its ethanol plant construction.” Its shares, quoted on the OTC Bulletin Board, traded for 5 cents apiece Wednesday, down from a high of $2.85 in the fall of 2006.

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Tags: ethanol

4 comments

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Blog Comments: Rules of the Road

Nice to know that the response to the need for clean fuel in the face of global warming being at or beyond a tipping point is … throwing up our hands and giving up.

— buran

4:22 pm June 25th, 2008

Corn is not the way to go anyway. Corn is a starchy food, and that starch has to be converted to sugar. Only then can the sugar be converted into alcohol. Sugar beets can be grown in the US and you get the sugar right off the bat, instead of wasting energy converting starch into sugar. What we need is to end the power of the corn lobby.

— Tim

4:26 pm June 25th, 2008

like everything else in the bush administration s long as it puts more money in the rich guys pockets,who cares if its bad for the the country.

— fish

11:01 am June 30th, 2008

I’m glad that financial markets are finally overcoming the false allure of subsidies to do their job of signalling that producing ethanol for fuel from corn is a waste of resources — including the fossil fuels needed to cultivate and fertilize fields, and harvest, transport, and process the corn.

— Ted44

6:04 pm July 2nd, 2008

K.C. ethanol firm will disband

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