Ethanol exec says credit crunch doomed projects

ROYAL – The president of Heartland Ethanol said the credit crunch – not the economics of ethanol – was the main reason his company abandoned efforts to build seven ethanol plants in Illinois, including one in Royal.

"The main issue was the ability to finance the project with bank loans," Heartland Ethanol President Walker R. Filbert said. "That came crashing down when the housing industry had its meltdown last August. We've been digging out from that for 10 months for all businesses, let alone ethanol plants." Heartland Ethanol had planned to build a 100-million-gallon ethanol plant on 65 acres north of Royal. But the company announced Monday it was pulling the plug on that project as well as projects in Griggsville, Vandalia, Gridley, Waverly, Ransom and Mendota.

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