As with all investment "opportunities", the money flows in; as production grows, price/demand will fall.
The red flag with ethanol investment is that at some point the reality will point to a shaky framework of government subsidies, the environmental impact, impact on food prices, and that it just wasn't a great investment in alternative fuels or our future.
Oct. 25 - De Moines, Iowa -- Ethanol producers have expanded so quickly, they're making more ethanol than drivers can use. The Renewable Fuels Association counts 129 ethanol plants in the United States, a nearly fifty percent increase from just two years ago.Another eighty plants are undergoing construction or expansion, but with corn prices at record highs and ethanol prices down, some investors are rethinking the power of corn. whotv.com
"Ethanol producers have expanded so quickly, they're making more ethanol than drivers can use."
This is another myth from the Heartland. All gasoline engines can run at least E10. More ethanol is being made than distributors want to buy, blend and offer to drivers.
Ethanol can only meet a small percentage of total fuel consumption in the United States.
Good point, "can use" assumes that the infrastructure has expanded to meet production.
Perhaps distributors don't want to invest in infrastructure because they don't believe in the viability of the product.