I would be surprised if ADM does bid on more than maybe a couple of the logistically advantageous facilities. ADM's key to success with ethanol is the integration into their large wet mills. There they can take advantage of cogen facilities, etc. that a stand alone facility could not. Corn stream diversification is a huge advantage also by slip-streaming for ethanol from a much larger stream to other processes.
Why buy an asset for half as much that will return less than that.
Got to look at the big picture from a processing cost long term. Only other reason I would see for any purchases would be to demo the facility and use the equipment elsewhere.
"Only other reason I would see for any purchases would be to demo the facility and use the equipment elsewhere. "
At the last conference call someone asked a question about the usefulness of the dry milling ethanol plant equipment if you wanted to convert to wet milling. They answered that about the only equipment that could be used is the elevators.
Of course this could have been another mis-direction from the ADM Mgt.