Two new ethanol plants received a lump of coal in their Christmas stockings—a Chapter 11 bankruptcy filing. One plant isn’t even completed. Now both face the unenviable task of clawing their way out of a hole to become successful enterprises. And both leave corn farmers and other investors wondering how such lofty aspirations went awry.
In mid-December 2007, Central Illinois Energy, a cooperative formed by 260 farmers and local investors who spent $130 million to build an ethanol plant near Canton, Ill., threw in the towel when they learned they’d lost their money—about one month shy of distilling their corn. Plant construction had mushroomed from its $40 million initial proposal in 2001, in part due to project additions, engineering delays and financing hurdles.
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