A company that is also producing ethanol amongst its many other business interests is The Andersons Inc. This ethanol company is certainly going places in grains and ethanol and in spite of various ups and downs in the agriculture sector; The Andersons Inc. has remained steady and regular. With very large storage capacities that can hold 150 million bushels as well as efficient access to foreign as well as domestic markets, The Andersons Inc. has the wherewithal to capture a large chunk of the ethanol business that relies on corn for inputs.
With legislation being passed that will require more ethanol use by refiners; the doors are opening for ethanol companies to meet the expected doubling of demand over four years for ethanol in the United States. With mandatory requirements for at least 7.5 billion gallons of ethanol to be bought by gasoline refiners in the year 2012, ethanol companies can look forward to having their order books filled in the immediate future.
Providing a Host of Services
The Andersons Inc. is an ethanol company that provides services to the ethanol industry in various capacities such as plant management and corn origination and also ethanol marketing. The Andersons Inc. is the largest equity holder in The Andersons Albion (Michigan) Ethanol LLC as well as The Andersons Clymers (Indiana) Ethanol LLC. It has strategically placed ethanol plants that are situated in close proximity of their grain facilities and so are able to efficiently service the ethanol industry.
An ethanol company such The Andersons Inc. will surely play a major role originating over 175 million bushels of corn, soybeans and wheat and it is a member of the Chicago Board of Trade as well as the Renewable Fuels Association. With more and more public concern being voiced about global warming as well as fears about land being flooded if the emissions of greenhouse gases goes unchecked it is up to ethanol companies such as The Andersons Inc. and others to show the way forward in ethanol production and marketing.
Any ethanol company such as The Andersons Inc. would be assured of attracting hot money since ethanol is the buzzword and investors are pouring a lot of money into this industry. There is however need for exercising caution when investing in an ethanol company and it should be based on economic data rather than on political sentiments. There is also plenty of scope for ethanol companies to get into the modification of car engines to accommodate ethanol based fuels such as the flexible-fuel cars being churned out today.