USA: US ethanol plants expected to cut output, impact on CO2 unclear

US ethanol plants are expected to cut production due to weak margins and oversupply, according to reports. Corn is the primary feedstock for ethanol production and floods in the Midwest region earlier this year disrupted planting for farmers. This created uncertainty around corn supply and pricing. Gasworld understands the potential impact on the carbon dioxide (CO2) business is not yet clear, with not all of the ethanol plants likely to be affected contributing to CO2 sourcing. The CO2 market in the US is known to be largely dependent on bioethanol production, unlike in Europe where it is mostly ammonia dependent, for example.