US Ethanol Production Capacity Continues Rapid Growth
The use of food-based crops for the production of biofuels is a controversial topic. Regardless, corn-based ethanol will be a large part of the alternative fuel picture for many years. In that context, the 2008 Annual Industry Outlook 2008 Annual Industry Outlook from the Renewable Fuels Association is a useful resource.
The RFA is the self-proclaimed “Voice of the Ethanol Industry,” so it understandably emphasizes the benefits of ethanol as an alternative fuel. Still, the report contains valuable information on the industry, including a complete listing of existing biorefineries and planned capacity expansion, almost all of it corn-based. It also features a listing of ethanol blending requirements around the world.
During 2007, ethanol production capacity increased by almost 2 billion gallons to an annualized rate of more than 7.8 billion gallons, according to the RFA. The industry grew from 110 biorefineries operating in 19 states across to 139 in 21 states.
In 2008 an estimated 4 billion gallons of ethanol production capacity will come online from 68 biorefineries under construction or expanding, the RFA report says.
Once all of the new construction currently underway is complete, the U.S. ethanol industry will be able to supply more than 13 billion gallons of ethanol, representing nearly 10% of the nation’s gasoline demand.
Actual production of ethanol soared 32% 6.5 billion gallons in 2007.
The RFA sees the conversion of feedstocks like corn stover, corn fiber and corn cobs will be the “bridge technology” that leads the industry to the conversion of other cellulosic feedstocks and energy crops such as wheat straw, switchgrass, miscanthus, and fast-growing trees, to name a few.
While the technology to produce cellulosic ethanol exists, commercialization remains a question of economics. The capital investment necessary to build cellulosic ethanol facilities is significantly more than that of grain-based facilities.
“Those costs will, of course, come down once the first few facilities are built, the efficiency of the process improves, and the technology continues to advance,” the report says.
The report also challenges claims that food-based feedstocks drive up food prices and are bad for the environment.
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