Ethanol Plant Financial Management

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Nov 9, 2013 (3 years and 8 months ago)

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Ethanol Plant Financial Management

Governors’ Ethanol Coalition

October 2006

Kansas City, Kansas


Economic Impact


National


Reduces dependence on foreign oil (President’s AEI calls for
75% replacement by 2025)



Rural Communities


Jobs


Infrastructure


Crop prices



A 50 mgpy plant = $46 million annual expenditure locally


Uses 18.2 million bushels of corn


Creates 836 jobs across the economy

Risk Management


Commodity Based


Double/Triple
-
sided commodity


Grain input


Natural gas usage


Ethanol output


Capital Intensive


50M gallon plant requires $75M to $100M in
capital and debt


State Incentives


Why give incentives


Cash incentives


Tax credits


Mandates?


What are the benefits


Encourage value
-
added/diversify ag sector


The value of the tax incentives are shared
among different groups including blenders,
ethanol producers and farmers



GEC Support


Who Needs It?


Producing Plants


Plants Under Construction


Proposed Plants


Important role of policy leadership


State emphasis/highlights

Questions?

Donna Funk

Kennedy and Coe, LLC

250 N. Rock Road, Suite 270

Wichita, Kansas 67206

Phone: 316
-
685
-
0222

funk@kcoe.com