At ease with ethanol

Central Illinois Energy, a US farming co-op, is in the process of building anethanol plant. And it has already started to think about hedging, reflectingthe growing sophistication of the US ethanol market. PaulLyon reports

Farming co-op Central Illinois Energy (CIE) is based in rural Fulton County,Illinois. Some 400 local farmers and investors have sunk funds into an ethanolplant and the hope is that the facility will process around 12 million bushelsof its members’ corn annually, producing 36 million gallons of ethanol,125,000 tons of distiller grains and other useful corn by-products. As a boosttowards its production costs, Illinois governor Rod Blagojevich has pledged upto $6 million of state aid for CIE

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