Ethanol Production

Interesting article about the upsurge of Ethanol production in the US.

Ethanol Production Reaches All-Time High
The Renewable Fuels Association (RFA) has announced that U.S. ethanol production in September eclipsed the record daily production average set in August, setting the new mark at 333,000 barrels per day (b/d). That is an increase of 55,000 b/d since the beginning of the year.

Additionally, demand for ethanol remained strong. The RFA estimates demand for ethanol in September was 380,000 b/d.

�The vast majority of Americans understand the importance of moving this country toward a more energy independent future,� said RFA President Bob Dinneen. �While no one is claiming that ethanol will solve all our energy concerns, it is helping to ease the impact volatile world oil markets have on U.S. consumers. By increasing the production and use of ethanol, we are becoming more reliant on America�s can-do spirit and less vulnerable to the whims of oil producers around the world.�

Currently, 109 ethanol biorefineries nationwide have the capacity to produce more than 5.2 billion gallons annually. There are 53 ethanol biorefineries and 7 expansions under construction with a combined annual capacity of more than 4.2 billion gallons.

Interesting to see such an interest in alternative energy sources but all this comes at a price. The production is subsidized by our tax dollars and the demand for feedstocks is causing the price of corn to go up with the corresponding rise in food prices.