Subsidies for Ethanol Plants

In order to help survive in the competitive market two of our newest ethanol plants are getting a little help from the state Blue Flint Ethanol of Underwood and Red Trail Energy in Richardton have collected nearly 1 8 million dollars in subsidies over the past six months Both plants receiving about 9-hundred thousand dollars Bill Huether State Energy Office Manager Basically it is to convince the plants to come into the state and to help keep them viable while they are here The program is capped at 10 million dollars per plant lifetime so it primarily helps them during the early years so they can stay in the black Heuther says the subsidies aren t based on profits He says they look at current Corn and ethanol prices But some believe subsidies aren t the answer Brett Narloch ND Policy Council Director They say that it is an infant industry Well ethanol plants in North Dakota have been receiving subsidies state subsudies for decades And what happened in Grafton as soon as the subsudies ended The plant closed So there is no doubt that these ethanol plants they can t compete in the market And if that is the case why should tax payers be forced to invest in something that people are not investing in Each plant is limited to 1 6 million dollars worth of annual subsidy payments