U.S. ethanol capacity growth to slow in 2009-EIA

Reuters India

Tue Apr 14, 2009 6:19pm IST

NEW YORK, April 14 (Reuters) - U.S. growth in ethanol capacity will slow this year on softer fuel prices and as financing for new plants evaporates, the government's top energy forecasting agency said Tuesday.

The explosive growth in ethanol plant capacity over the last few years will "slow dramatically in 2009" as lower gasoline prices hurt ethanol margins, and the credit crunch halts construction plans, the Energy Information Administration said in its monthly short-term forecast.

Ethanol capacity grew about 60 percent last year amid generous government incentives and mandates calling for steep increases in the amount of the alternative fuel to be blended into gasoline.

Read the full story