Ethanol Maker Delays Opening of New Hoosier Facility
POET energy operates five biofuels plants in Indiana. (image courtesy: POET)t in Cloverdale. (photo courtesy: POET)
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowA biofuels plant scheduled to open in Shelby county has been put on hold due to the economic fallout of the COVID-19 pandemic.
South Dakota-based POET Energy is delaying the startup of production of the new plant in Shelbyville.
As more Americans stay-at-home during the pandemic, demand on the nation’s gasoline supply has declined.
“One implication of the virus-related restrictions is that people are driving much less than before, which means that gasoline and ethanol use are declining. The impact on the price of ethanol has been swift and severe,” said Scott Irwin, an agricultural economist from the University of Illinois.
The Renewable Fuel Standard requires gasoline to include 10% ethanol.
“POET has faced difficult times in the past and we have proven our resiliency. We value the partnership and relationship we have with all of our producers and look forward to getting back to normal operations,” said a company statement.
POET operates five plants in the Hoosier state. The statement from the ethanol producer did not indicate the status of the other plants in Indiana
The company is also idling production at biorefinery plants in South Dakota and two in Iowa and slowing production at other plants.
Ethanol producers across the country are slashing production amid the ongoing crisis.