Top Ethanol Lobbyist Says Tough Times Ahead For Industry

November 18, 2008 7:34 a.m. EST

Washington, DC (AHN) - More ethanol companies may soon declare bankruptcy, and the industry will likely experience increased consolidation, the head of an ethanol trade group told a Washington, D.C. audience this week.

Bob Dineen, the president of the Renewable Fuels Association told a U.S. Energy Association briefing that his industry is experiencing rough times due to tightening profit margins and less demand for ethanol, and transportation fuels in general.

Dineen also said that a congressional proposal to bail out the U.S. automobile industry with billions of federal dollars should hinge on automakers building more cars that can run on ethanol.

So-called flex-fuel vehicles can run on both conventional gasoline and fuel blends of up to 85 percent ethanol, known as e-85. Less than 10 percent of all U.S. vehicles can run on e-85.