US says ethanol output can eventually meet target

Reuters UK
By Ayesha Rascoe

WASHINGTON, Nov 18 (Reuters) - U.S. ethanol production could eventually top 14.5 billion gallons a year, up 16 percent from output capacity at the beginning of 2009 and enough to blend 10 percent of the fuel into every gallon of the nation's gasoline, the U.S. government said on Wednesday.

U.S. ethanol output capacity stood at almost 12.5 billion gallon a year at the start of 2009, the Energy Information Administration said in its weekly petroleum report. But with capacity outstripping demand, only about 10.6 billion gallons of capacity was in operation at the start of the year.

Ethanol output capacity tripled between 2006 and 2009, but the industry has hit some growing pains as rising corn prices and falling gasoline costs hurt profits.

"Today's surplus capacity is likely to be brought into operation in the future," the EIA said.

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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.

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US ethanol sector faces grim prospects-USDA

Reuters
Thu Feb 26, 2009 8:56pm GMT
By K.T. Arasu

WASHINGTON, Feb 26 (Reuters) - Hard times have hit the once-robust U.S. ethanol sector amid the economic recession, with as much as 15 percent of production capacity likely standing idle, USDA chief economist Joseph Glauber said on Thursday.

It was a sobering assessment of the fledging industry that was once bursting with optimism and financial gains as the country issued mandates on using the renewable fuel to reduce dependence on crude oil.

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Ethanol production will have to increase to meet government mandates

High Plains/Midwest Ag Journal

Ethanol plant construction has come to a halt, but the mandates by government are not declining, which could mean prices could jump again. Producers should prepare for round two, a Texas AgriLife Extension Service specialist said.

"Expanded ethanol production is probably a given; however, the pace is expected to slow due to capacity limits and policy," said Dr. Steve Amosson, AgriLife Extension economist.
The president-elect and U.S. Secretary of Agriculture are both big supporters of renewable fuels, Amosson said. President-elect Barack Obama has stated, "I have established a goal to have 60 billion gallons of our fuel come from sustainable, affordable biofuels in 2022."

The reality right now is that nationwide 213 ethanol plants were in production or under construction in September 2007, with many more on the drawing table, he said.

Nine months later, some of the plants that were under construction have come into operation, but no new plants have started construction.

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