Gore-touted ethanol company in trouble

Environmental Capital - WSJ.com : Ethanol Fumes: After VeraSun, More Trouble for Midwest Ethanol Makers?

Another big name appears to be quivering: AltraBiofuels, an Omaha, Neb-based ethanol producer backed by celebrity venture capitalists such as Vinod Khosla and Kleiner Perkins. Altra is suspending production at its plants in Indiana and Ohio in part due to the collapse of ethanol prices.

An Indiana paper initially reported that Altra would shutter its two plants; Altra later described the December layoffs at its Ohio plant as a “furlough” and said it aimed to re-start production in January. The Indiana plant isn’t so lucky: “Due to the poor margin environment, we have made the decision to stop producing ethanol at our Cloverdale facility,” Altra said in a statement.

U.S corn ethanol makers might be getting a break from lower corn prices, but ethanol prices have also collapsed. Ethanol nearly hit $3 a gallon in June; today it trades just under $1.40 a gallon....
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Altra is a poster child of sorts for the corn ethanol business, attracting investment from Mr. Khosla and Kleiner Perkins. Former vice president Al Gore touted Altra as an example of the alternative-energy companies that could underpin a green revolution in the U.S.

FOXNews.com - Junk Science: Al Gore's Epic Hypocrisy - Opinion

"As important as it is to change the light bulbs, it is more important to change the laws," [Gore] says.

Here’s where it gets more interesting. The laws that Gore is referring to, of course, are those that would provide subsidies to and mandates for the alternative energy industry. Gore spotlights a number of these companies, including Smart Car; Amyris Biotechnologies; Altra Biofuels; Mascoma (cellulosic ethanol); Great Point Energy (biomass-to-gas and carbon capture technology); Altarock Energy (geothermal energy); Bloomenergy (fuel cells); Missole (solar technology); and Ausra (solar technology).

As the companies; corporate logos flash on the screen, Gore states: "Here are just a few of the investments that I personally think make sense. I have a stake in these."