Ethanol Consolidation Appears to be Beginning

It was only a matter of time given the tight or non-existent margins in the ethanol industry. Much of the initial capital came into ethanol companies because of favorable tax incentives. Now we will see consolidation.

I suspect that we are only beginning the first wave of consolidation. It will be driven by the most efficient current producers. The second wave will see the major oil companies entry.

First signs of consolidation in ethanol industry