The push for renewable energy sources sparked a surge in the biofuels industry, but a significant number of smaller ethanol plants have recently filed for bankruptcy or been scrapped before completion. Rising corn and energy prices and slimmer margins are central factors. Rick Schwarck, CEO of Absolute Energy LLC, says the price of corn and soybeans is closely linked with the price of crude oil. According to Alex Moglia, president of Moglia Advisors, there will be a short-term shake-out in the industry, eliminating some of the weaker players but sees continued long-term growth.
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