The value of an octane barrel has risen significantly in recent years going from $2.10 in 2010 to $3.99 in 2015. This has surprised industry analysts since the refining industry has been blending a growing amount of ethanol, which has an octane rating of ~113, and the general consensus was that the industry had a […]
E15 anyone?
The ethanol industry is struggling again thanks to lower gasoline demand and higher corn prices. Plant shutdowns that started with players at the high end of the supply curve have now spread to the larger companies, including Valero and ADM who have reduced or idled capacity. Crush spreads today stand at less than 10 cents […]
Shell’s growing bet on biofuels
Shell’s $1.6 billion investment http:in Brazil’s Cosan to create a $12 billion joint venture indicates the company’s growing comfort with the economics of biofuels. Of course, sugarcane-based ethanol has always been far more viable economically than the U.S. focus on corn ethanol. Nevertheless, creating a separate JV integrating a variety of biofuels routes with an […]