GTL Resources reduces February ethanol output at Illinois River Energy corn biorefinery by 7% due to lower corn grind rates that enable higher yield
February 10, 2012
– GTL Resources (GTL) today announced that it has reduced February ethanol output at its Illinois River Energy (IRE) corn bio-refinery in Rochelle, Illinois by approximately seven percent (7%). The reduction results from lower corn grind rates that enable more efficient, higher yield production.
Commenting on the decision, Richard Ruebe, Chief Executive Officer of GTL and IRE, said, "Our team has spent a great deal of time studying the impact of corn grind rates and other operating conditions on ethanol yield, distillers grains yield, and energy usage. By running reduced rates and optimizing operating conditions at those reduced rates, we have found that we can lower our per gallon variable operating costs significantly. In weak margin environments, those savings in variable costs more than offset the lower revenues from reduced sales. It's an economic decision."
The company indicated that it expects its run rate cuts to remain in place as long as margins remain depressed.