Credit woes afflict North Carolina biofuel plans
A strangely familiar story, this time focusing on North Carolina, investors backing out, ambitious plans shelved, loans being pulled, raw materials too dear, sums don't stack-up anymore etc, etc....
North Carolina's plan to become an East Coast biofuels hub is slowly fading. Of the seven projects announced over the past two years, only two are on track for construction. Three appear dead -- with one sued by its investor, Richard Branson of Virgin Airlines. Two others are in limbo.
The most recent projects delayed are a $30 million biodiesel refinery near Wilmington and a $20 million biofuels park near Spring Hope.
Backers blame record prices and tightening credit.
The price of corn, which could average $6 a bushel this year, is raising operating costs for facilities that produce ethanol or biodiesel from corn or corn oil. At the same time, prices for some biofuels are under pressure and money is hard to come by.
That puts companies looking for investments or loans to build biofuels plants in a tough spot.
"Investors are not as interested in doing what they were willing to do six months ago," Raleigh consultant Doug McCullagh said Wednesday.
There's more if you want it here: I've changed my mind
North Carolina's plan to become an East Coast biofuels hub is slowly fading. Of the seven projects announced over the past two years, only two are on track for construction. Three appear dead -- with one sued by its investor, Richard Branson of Virgin Airlines. Two others are in limbo.
The most recent projects delayed are a $30 million biodiesel refinery near Wilmington and a $20 million biofuels park near Spring Hope.
Backers blame record prices and tightening credit.
The price of corn, which could average $6 a bushel this year, is raising operating costs for facilities that produce ethanol or biodiesel from corn or corn oil. At the same time, prices for some biofuels are under pressure and money is hard to come by.
That puts companies looking for investments or loans to build biofuels plants in a tough spot.
"Investors are not as interested in doing what they were willing to do six months ago," Raleigh consultant Doug McCullagh said Wednesday.
There's more if you want it here: I've changed my mind
