NEW YORK, May 15 (Reuters) - U.S.-based grain trader and

processor The Andersons said on Wednesday it has been

difficult to find the right asset for a potential acquisition as

part of its plan to grow ethanol production.

Chief Operating Officer Bill Krueger said in a discussion

panel at the BMO Global Farm to Market Conference that The

Andersons has been looking for potential acquisition targets for

a while but has yet to find the right asset that will allow it

to produce ethanol with a lower carbon intensity score.

"We have been vocal that we want to grow our ethanol

production, either through acquisitions or new plants," Krueger

said, adding that a potential asset to be bought needs to be

large, efficient and be located in an area whose geology will

allow for a carbon capture project. Ideally, it would have good

logistics as well.

"We have not found that yet," he said.

Ethanol companies in the U.S. have plans to sequestrate and

store part of the carbon emissions from their operations as a

way to produce a fuel with a lower carbon footprint and benefit

from higher market prices as well as from tax credits.

Krueger said the company is positive about the ethanol

market, even before any larger development of sustainable

aviation fuels (SAF), and it is looking to partner with farmers

that supply corn for their operations regarding low-carbon

farming practices.

If the company is able to combine improvements in its

ethanol facilities with farmers' better practices regarding

carbon, The Andersons would capitalize on tax credits, he said.

"Farmers are very interested in finding opportunities for

price premiums, particularly in this market environment," the

executive said.