Prof. Vaaler Comments on CHS Ethanol Plant Acquisition

Professor Paul Vaaler was interviewed on WCCO News Radio to discuss motivations for the recent CHS acquisition of an ethanol plant located in Illinois producing 100 million gallons annually. The Inver Grove Heights-based agricultural cooperative spent $200 million for the acquisition and has announced plans to acquire more ethanol plants even though energy prices globally are low and expected to remain low in the near term. Vaaler speculated that CHS was buying ethanol plants to take advantage of mandates for increased use of ethanol in gasoline products under the U.S. Environmental Protection Agency's Renewable Fuel Standard promulgated in 2005. CHS also sells gasoline through its CENEX line of service stations. Vaaler appears weekly on WCCO News Radio's Dave Lee Show to discuss current business issues.