Alternative Fuels: Feasibility of Expanding the Fuel Ethanol Industry Using Surplus Grain

摘要

The briefing report examines the feasibility of using surplus federally owned grain to further the development of the ethanol industry. The authors examined two financing concepts: (1) producers/developers would use surplus grain as collateral to obtain financing from lending institutions to construct new ethanol plants or expand existing facilities and (2) producers/developers would use surplus grain as a free feedstock to produce ethanol, which could induce lending institutions to finance the construction or expansion of ethanol plants or facilities (i.e., the savings from using free feedstock could be used to help repay loans).