Because of the energy bill …
Ethanol producers are taking their companies public and stockholders are investing. Yesterday, VeraSun Energy, the nation’s No. 2 producer of ethanol, went public and the IPO price jumped in one day from $23 to $30 – a 30 percent climb. Hawkeye Holdings and Aventine Renewable Energy, the No. 3 and No. 4 producers of ethanol, are also planning IPOs. The energy bill calls for 7.5 billion gallons of ethanol to be used annually in the production of gasoline by the year 2012.
The strong demand for ethanol is also revitalizing rural America. The price of corn has more than doubled since last fall to $3 a bushel on the Chicago Board of Trade. Today there are more than 100 ethanol refineries operating around the country capable of producing nearly 5 billion gallons of ethanol. More than 20 have come online since the energy bill became law, four just last month. Another 32 are being built and six are being expanded. Each ethanol plant employs between 40 and 50 people.