The important thing from the announcement was that they are to build an ethanol plant next to biodeisel plant. this is a very effective process as land is paid for, as is the infrastructure ie railway sidings etc.
oil crushing plant also planned. AAE also would like to introduce a feedlot operation as a part of the complex or close by so that the distillers grain and oil seed crush waste can be used in close proximty to the plant. the waste from the feedlot is then used to produce methane for energy input into the plant. making it a very green plant to say the least
Also looking at other ventures.
Bad things about the ethanol is the supply side ie corn. it is very tight and there is arguement that there may not be enough corn for all the plants planned ot be in production let alone new ones like AAEs. My understanding is that margin on biodiesel in slipping which may have been cause of consern and the slip in price.
today strength may just be a fleeting moment and seems to have a lot of resistance at 35-35.5 ie the purchase price. dont think it will go past quickly though.
need to wait
AAE Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
