US ethanol market projected to grow
The Energy Information Administration (EIA) predicts a reversal in fortunes for the US ethanol industry this year.
From 2008-2009 a decline in ethanol-blended petrol consumption struck a blow to the industry, but now the economy is set to bounce back, and the rising requirements of the federal Renewable Fuel Standards will further assist this.
‘Ethanol production continues to grow to meet the volume requirements of the Renewable Fuel Standard from 11.1 billion gallons in 2009 to 12.95 billion gallons in 2010,’ EIA states.
California has already raised its mandatory biofuel blend from 5.7% to 10% this year, and the industry awaits a decision from the US Environmental Protection Agency (EPA) to approve an increase in the allowable fuel blend in conventional vehicles from the current level of 10% to 15%.
While most ethanol plants in the US operated in the red during the first half of 2009 their average margins improved to about $0.40 (€0.28) a gallon in the last six months of this year on lower corn prices and rising demand.
Iowa is the nation’s largest ethanol producer, accounting for about 3.5 billion gallons of the 10.5 billion gallons produced in the US last year.
From 2008-2009 a decline in ethanol-blended petrol consumption struck a blow to the industry, but now the economy is set to bounce back, and the rising requirements of the federal Renewable Fuel Standards will further assist this.
‘Ethanol production continues to grow to meet the volume requirements of the Renewable Fuel Standard from 11.1 billion gallons in 2009 to 12.95 billion gallons in 2010,’ EIA states.
California has already raised its mandatory biofuel blend from 5.7% to 10% this year, and the industry awaits a decision from the US Environmental Protection Agency (EPA) to approve an increase in the allowable fuel blend in conventional vehicles from the current level of 10% to 15%.
While most ethanol plants in the US operated in the red during the first half of 2009 their average margins improved to about $0.40 (€0.28) a gallon in the last six months of this year on lower corn prices and rising demand.
Iowa is the nation’s largest ethanol producer, accounting for about 3.5 billion gallons of the 10.5 billion gallons produced in the US last year.
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