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.

(Reporting by Marcelo Teixeira Editing by Marguerita Choy)