Futures Magazine reports that a significant number of smaller ethanol plants have recently filed for bankruptcy or been scrapped before completion, thanks to rising corn and energy prices. Apparantly part of the problem is that farmers contracted to feedstock can't really do it:

http://futuresmag.com/cms/Futures/Monthly%20Issues/Issues/2008/08/Editorial/Departments/Trendlines/Trendlines-Ethanol?searchfor=shake-out%20in%20ethanol