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Officials say more Iowa ethanol plants may close

DES MOINES, Iowa (AP)--Renewable fuel officials say more ethanol plants in Iowa could close as the industry deals with falling prices.

The drop in price for corn, crude oil and ethanol had resulted in reduced revenues for the ethanol industry this year, prompting three of the state's 32 ethanol plants to file for bankruptcy.

Plants in Albert City, Dyersville and Steamboat Rock have closed in recent months.

Monte Shaw, executive director of the Iowa Renewable Fuels Association, says it's a frustrating time for the ethanol industry. He says a few more plants may close until the market equals out.

Shaw also says the industry was probably overbuilt.

Shaw dismisses talk that the industry is collapsing and says more ethanol will be produced next year.

6 Star Midwest Ag\5-B

Date: 12/29/08

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