The Wall Street Journal's MarketWatch
May 1, 2012, 7:57 a.m. EDT
Hart Energy study insists U.S. production mandates are out of sync with market reality
HOUSTON, May 1, 2012 /PRNewswire via COMTEX/ -- Hart Energy's newly released study, U.S. & Brazil Ethanol Outlook to 2022, finds the United States has vaulted over Brazil to lead the world in the export of ethanol, a title it is positioned to retain in 2012 and beyond.
The study also dismisses the notion that goals of two programs in the U.S. can be achieved. Biofuels volumes required by the federal Renewable Fuel Standard (RFS) and California's Low Carbon Fuel Standard (LCFS) do not match with the realities of commercialization and availability, Hart Energy maintains, and changes in these policies will be necessary in the next few years.
"Much of the focus has been on the 'blend wall,' biodiesel, and cellulosic biofuels targets of the RFS program in the public forum," said Tammy Klein, assistant vice president of Hart Energy. "But what's so striking to us is that Brazilian ethanol is needed to meet targets under those programs -- and our forecast shows it will not be available at critical points in the study period."