U.S. ethanol growth slows

StarTribune (Minneapolis, MN)
Updated: September 22, 2011 - 4:50 PM

U.S. ethanol producers are creeping toward 1 million gallons per day in output, but the industry's growth slowed in early 2011 because of sluggish demand for gasoline and barriers to blending at greater than 10 percent.

The U.S. Energy Information Administration, which monitors motor fuels, said in a new report that during the first five months of 2011, daily ethanol production increased 6.9 percent, to 903,000 gallons, compared with the same period in 2010. Last year, full-year production rose 22 percent over 2009.

The report said nearly all fuel ethanol currently used in the United States is consumed as a 10 percent blend with gasoline. Although blends up to 15 percent have been approved for vehicles manufactured after 2000, various issues, including potential mis-fueling and associated liabilities, have limited adoption of higher blends, it said. Gasoline consumption also is down overall, reducing the need for blended ethanol, the report said.

As a result, more ethanol is hitting the export market, the report said.

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