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BUSINESSSaturday 31 October 2015
DuPont to open
$225M cellulosic
ethanol plant in Ia.
FILE - In this June 12, 2015, file photo, Judith Castro, right, takes a lunch order from Julio Sanchez In this Monday, Aug. 31, 2015 photo, Pioneer seed, manufac-
at a local grocery store in the Little Havana area of Miami. tured by Dupont, is displayed at the Farm Progress Show in De-
catur, Ill. Dupont reports quarterly financial results on Tuesday,
Associated Press Oct. 27, 2015.
Consumer spending records Associated Press
weakest gain in 8 months DAVID PITT
Associated Press
MARTIN CRUTSINGER pocketbooks, even if at a percent in August. NEVADA, Iowa (AP) — A refinery designed to make etha-
AP Economics Writer more modest pace. The Federal Reserve this nol from cornstalks, leaves and cobs — not the grain itself
WASHINGTON (AP) — Con- “Consumer spending is still week left its benchmark — opened Friday in central Iowa, the culmination of a
sumer spending in Septem- healthy but it slowed as the interest rate at a record $225 million construction project and millions more invest-
ber posted the smallest third quarter came to an low near zero, where it has ed in its engineering and design.
gain in eight months, a sign end,” said Jennifer Lee, an been for the past seven The plant, owned by chemical and biotechnology com-
that shoppers grew cau- economist at BMO Capital years. However, in a state- pany DuPont, will use the same bacteria that tequila dis-
tious at the end of the third Markets. ment, Fed policymakers tillers use to make ethanol instead of yeast, which is most
quarter. The overall economy said they would be looking prevalent in the ethanol industry. It’s one of the new in-
Americans increased their slowed sharply in the July- at the progress made on novations DuPont said it has incorporated into the plant,
spending just 0.1 percent, September quarter to an its employment and infla- touted as the world’s largest cellulosic ethanol plant; Du-
the Commerce Depart- annual rate of just 1.5 per- tion objectives in deciding Pont expects it to eventually make 30 million gallons of
ment said Friday, the weak- cent, less than half the 3.9 whether to begin raising the fuel additive a year.
est showing since they cut percent rate seen in the rates at its “next meeting.” “Our goal is to replicate this process in other rural commu-
spending in January. In- April-June period. But that It marked the first time in nities in the U.S. and around the world so that societies ev-
come growth inched up was mainly because busi- the Fed’s seven years of erywhere can realize the economic, environmental and
0.1 percent, which was nesses trimmed their stock- low interest rates that offi- energy security benefits of advanced renewable fuel,”
the smallest amount in four piles. Consumer spending cials have suggested that said William Feehery, president of DuPont Industrial Biosci-
months. Wages and sala- was solid. they could raise rates at ences, which runs the Iowa plant.
ries were flat following two Spending is closely the next meeting, which The plant’s ethanol also will go into Tide laundry deter-
months of big gains. watched because it ac- will occur Dec. 15-16. gent, replacing the corn-based ethanol long used to
Still, spending totals can counts for 70 percent of One factor influencing stabilize the detergent formula and enhance washing
be influenced by price economic activity. that decision will be the performance. Refining ethanol from corn-plant material,
changes, and falling gaso- Economists are forecast- performance of the Fed’s called stover, makes use of the waste left on fields after
line costs last month were a ing that it will remain on favorite gauge of inflation, harvest and expands the potential production of ethanol
big reason for the weaker track in the fourth quarter, which is linked to consumer without using more of the grain itself. But the plant also
spending figure. Adjusted reflecting further gains in spending. opens at a time when the ethanol industry is struggling to
for inflation, consumers employment that should In Friday’s report, overall maintain its market as it battles with the petroleum indus-
spent 0.2 percent more in give households more in- inflation actually fell by 0.1 try to retain government support.
September. come to spend. Consum- percent in September, re- The U.S. has more than 200 biofuel plants, and most use
Americans snapped up ers are also benefiting from flecting the drop in energy the corn kernel to make ethanol. A few other cellulosic
cars and other large manu- declines in energy prices prices. Over the past year, ethanol refineries have opened across the U.S., but those
factured goods, the report which give them more this inflation gauge is up just in Kansas and Mississippi have fallen short of expectations
showed, and spending money to spend on other 0.2 percent, far below the after dealing with production problems.
on services also rose at a items. Fed’s 2 percent target. Ex- The DuPont plant will be in full production next year, said
healthy clip. Many econo- The saving rate edged up cluding volatile food and Jan Koninckx, DuPont’s global business director for bio-
mists were reassured that slightly to 4.8 percent of energy, prices are up 1.3 refineries, but was “careful not to predict exactly” how
Americans are still willing after-tax income in Sep- percent, still below the 2 much it’ll produce in 2016. DuPont is paying 500 Iowa
to open their wallets and tember, compared to 4.7 percent. farmers for their stover, a new way for them to make
money.
The U.S. Environmental Protection Agency has proposed
lowering biofuel requirements set by Congress by 4 bil-
lion gallons this year and 5 billion gallons next year, not-
ing that available fuel pumps and infrastructure limit how
much ethanol can be distributed.
