PO Box 1146
Salida, CO USA  81201
(719) 539-0300
Fax: (719) 539-0301


BBI International... Your Biofuels Resource


Event Calendar

World Biofuels Symposium
November 13-15, 2005
Beijing, China

2nd Annual Canadian Renewable Fuels Summit
December 13-15, 2005
Toronto, Ontario, Canada
Hosted by:
Candadian Renewable Fuels Association

National Biodiesel Conference & Expo 2006
February 5-8, 200
San Diego, California
National Biodiesel Board

11th Annual National Ethanol Conference: "Policy & Marketing"
February 20-22, 200
Las Vegas, Nevada, USA
Sponsored by:
Renewable Fuels Association

22nd Annual International Fuel Ethanol Workshop & Expo
June 20-23, 200
Milwaukee, Wisconsin, USA

Join our
Email Subscription List

Select your topics of interest for regular and timely updates - control your subscriptions and unsubscribe anytime

Complete Listing of Upcoming Events

Event History

Free Booklet Download:
Fuel Ethanol: A Technological Evolution



Posted on  

February 7, 2002

Money Lenders Banking On Ethanol

As the ethanol industry continues its $3.7 billion build-out over the next three to five years, banks and money lenders are looking to get a piece of the ethanol action.

Many of the cooperative owned ethanol ventures across the country have performed feasibility and site studies to determine if ethanol is a viable direction to head, but they often come up short collecting the capital to proceed with construction. Farmer investments, equity drives, and stock sales often provide the projects with only 25% of the capital needed to build a plant. Grants, municipalities, and Ag related companies usually provide another 15%, leaving about 60% of the remaining capital to be borrowed from banking institutions.

Mark Schmidt, Commercial Load Officer with AgStar Financial Services (Rochester, MN), a leading major lender in the ethanol market, said, "Ethanol producers need to come up with a 40-50% down payment to get these facilities going. To build a greenfield 40 million gallon per year ethanol plant, you would have to come up with at least $20-$25 million dollars in equity and down payment."

Some of the emerging ethanol players are ready to proceed with construction and enter the market but cannot come up with enough working capital to start engineering design and construction. The ethanol market will not sit still while companies struggle to find cash.

Only about five major lenders in the U.S. are specifically perusing the ethanol market and with capital investments projected to reach over $3.8 billion in the next three years, we should expect to see more bankers banking on ethanol.


Other News

Click here to see previously posted News items in our Archive

BBI Store

BBI International
Project Development

Multi Client Study:

More information and contents

BBI Online Store


Biodiesel Industry Directory Online:
View it FREE!


Home | Company Info | International Fuel Ethanol Workshop & Trade Show | Biofuels Recruiting | BBI Media

Biofuels Project Development - Biofuels Conference & Event Planning - BBI Media - Biofuels Recruiting

All logos and trademarks in this site are property of their respective owner.
Remainder of content Copyright © 2005 BBI International.