December 10, 2007
(Sacramento, CA) -- The largest marketer and producer of ethanol on the West Coast has suspended construction of one of three new plants, citing an increasingly difficult market for the alternative fuel.
Pacific Ethanol Inc. of Sacramento said Monday it has stopped work on its Imperial Valley ethanol plant near Calipatria, Calif. It will continue construction of its plants in Stockton, Calif. and Burley, Idaho.
Ethanol producers are battling higher prices for corn, the primary feedstock for production, and an oversupply of ethanol.
The volatility of the market for ethanol is a challenge for several firms planning to build ethanol refineries in Hawaii. Construction isn't scheduled to start until next year on a plant at the Gay & Robinson plantation on Kauai, the project that's farthest along in the planning stage.
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