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US - Ethanol Production Hit a New High in January 2010

Apr 27, 2010
Ethanol production in the US attained a new high this January, however to enjoy large-scale profits, the industry needs to focus more on cellular-based ethanol fuel production.

As per the information provided by the Energy Information Administration (EIA), the production of ethanol fuel in the US totaled over 818,000 Barrels per day in January this year, up 188,000 Barrels per day year-on-year, according to the news published by AutomotiveWorld.

According to calculation by the Renewable Fuels Association (RFA), ethanol demand in the US reached 784,000 Barrels per day. In January 2009, the figure stood at 644,000 Barrels per day. In January this year, the import of ethanol fuel into the country totaled 1.4 Million Gallons.

As a result of the increasing need of the Renewable Fuel Standards, ethanol fuel production in US is rising with the increasing demand for biofuels. The Renewable Fuels Standard expects the production of biofuels to reach 36 Billion Gallons in 2022, up from 11.1 Billion Gallons in 2009, with 21 Billion Gallons coming from “advanced biofuels”.

Due to obsolete regulations, the drivers in America are being barred access to extended use of ethanol and ethanol blends. The increase experienced in ethanol reserves in a time of grand economic benefit in ethanol pricing requires EPA (U.S. Environmental Protection Agency) to permit almost 15% ethanol blends for all vehicles, irrespective of model year.

The ethanol producers in America continue to offer rising supplies of a renewable substitute to imported oil, but the increased demand and production continue to draw attention to the need for raising the ethanol blend level in gasoline, according to the industry experts.

With this increase in demand, US ethanol industry has a promising future in the years to come. According to a market research report titled “US Biofuel Market Analysis” by RNCOS, corn is expected to govern the future production of ethanol in the US with a CAGR of 5.59% between 2010-2011 and 2013-2014.

According to a Research Analyst at RNCOS, “The ethanol market has been growing considerably in the past few years. However, corn-based ethanol production mainly dominates the market. Cellular-based production of ethanol is still far behind. The industry is required to expand ethanol use in automobiles and also expand ethanol production via cellulosic technologies in order to achieve large scale gains.”

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Emerging Biofuel Market in India
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