Because of the energy bill …
There are now 32 ethanol plants under construction. Twenty-one of those plants have broken ground since last August when Congress passed and the President signed the energy bill. As a result, the ethanol industry expects that more than 2 billion gallons of new production capacity with begin operations in the next 12 to 18 months. Most recently VeraSun energy raised $483 million in an initial public offering. Other companies are raising equity financing in public markets – Aventine Renewable Energy is currently attempting to raise $302 million and Hawkeye Holdings has filed a Prospectus to raise $500 million. Daniel More, a Managing Director at Morgan Stanley, testifying recently before the Senate Energy and Natural Resources Committee stated, “Over the last twelve months, the interest in investing in the Ethanol industry has certainly caught the attention of Wall Street and of the Institutional Investors who drive the investment discussion in the United States and abroad.”