Ethanol Production Too High, Says Purdue Official

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(WEST LAFAYETTE) - A Purdue agronomist warns the U.S. is beefing up its capacity to churn out ethanol faster than its capacity to handle it all.

Wally Tyner says ethanol production will double to 13-billion gallons by the end of the year. He says that's at least a billion gallons more than the market will bear.

Tyner expects ethanol prices may drop, or some plants may have to cut production or close. Tyner says the market won't be able to handle more than 12-billion gallons until there's an improved system of shipping the fuel by rail to the east coast and the south.

Ethanol is too corrosive to ship through pipelines.

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