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Mid-Missouri Energy: Ethanol from Corn

Company name
Mid-Missouri Energy (MME)

Author(s)
Forest Reinhardt, Noel Michelle Holbrook, James Weber, Karla Sartor

Source
Harvard Business School

Access this case
Mid-Missouri Energy: Ethanol from Corn

Year published 
2010

Last year covered in case 
2009

Abstract

Mid-Missouri Energy (MME) is a farmer-owned cooperative created to take advantage of the growing interest in ethanol as an automotive fuel. MME’s 40-million-gallon-per-year plant began production in February 2005 and, since that time, has exceeded all performance projections in terms of output, high price received for ethanol, and low price paid for feedstock (corn). Aided by record gasoline prices and usage mandates in the 2005 energy Bill, U.S. ethanol demand is projected to increase. MME must decide whether to double plant capacity.

Teaching note

  • N/A

Key Management Reading

  • Ambec, S. & Lanoie, P. (2008). Does it pay to be green? A systematic overview. Academy of Management Perspectives. 45-62
  • Reinhardt, F. (1999). Bringing the Environment Down to Earth. Harvard Business Review. July; 149-157 

    Other Readings

    • Wilson M, Schwarzman M, Malloy T, Fanning E, Sinsheimer P. (2008) Green Chemistry: Cornerstone to a Sustainable California. Special Report to the California Environmental Protection Agency. University of California Centers for Occupational and Environmental Health 
    • Poliakoff, M., & Anastas, P. (2001). A principled stance. Nature, 413(6853), 257.
    • Hjeresen, D.L., Kirchoff, M.M., Lankley, R.L. (2002) Green Chemistry: Environment, economics and competitiveness. Corporate Environmental Strategy, 9(3). 259-266 
    • Manley, Anastas, Cue. (2008) Frontiers in Green Chemistry: meeting the grand challenges for sustainability in R&D and manufacturing. Journal of cleaner production. 16:743-750 
    • Larson, A. (2006) Illustrating the Financial Benefits of Green Chemistry. Darden Business Publishing. Case #: UVA-ENT-0076

    Audio/Visual Material

    Discussion Questions

    • Which principles of green chemistry are used in the case?
    • How do the principles of green chemistry translate into business benefits?
    • What are the tradeoffs between the principles? Is this really a "green" technology?

      Green Chemistry Principle

      • Principle 7 Use of Renewable Feedstocks 

      Industry
      Fuels and Biofuels

      Teaching Topic
      Business-government relations
      Community Development/Economic Development
      Economic Systems
      Environmental issues
      Restructuring
      Social need as business opportunity
      Sustainability

      Management Discipline
      Business, Government and Society
      Economics
      Entrepreneurship
      Management
      Operations
      Strategy

      Business Logic
      Better access to certain markets

      Environmental Issue
      Biofuels
      Climate change
      Food vs Fuel 

      Region
      North America

      Self Identified as Green Chemistry?
      No

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