US ethanol capacity reaches 7.8bn gal in 2007

25 February 2008 20:30  [Source: ICIS news]

HOUSTON (ICIS news)--US ethanol capacity rose by nearly 4bn gal/year in 2007, reaching 7.8bn gal/year, according to the Ethanol Industry Outlook report released on Monday by the Renewable Fuels Association (RFA).

The number of US refineries rose by 29 to reach 139 last year, the group said. The major refineries are listed in the outlook.

In 2008, the group said 68 new refineries or expansions should come online, increasing ethanol capacity by about 4bn gal/year. By the end of the year, US capacity could reach 13bn gal/year, representing nearly 10% of the nation's gasoline demand.

The RFA issued the outlook on the eve of its annual ethanol conference, the biggest event on the US ethanol industry's calendar. The conference in Orlando, Florida, starts Monday and runs through Wednesday.

“2007 was an historical year for ethanol in the US and around the globe,” said Bob Dinneen, RFA president. 

“From landmark energy legislation to unprecedented growth to the rapid development of new technologies, America’s ethanol industry is in the midst of a remarkable evolution," he said. "With all the misinformation being passed around about ethanol, the 2008 Ethanol Industry Outlook provides an authoritative source of facts and figures about America’s ethanol industry.”

As such, the outlook defends the ethanol industry against criticism that it raises food prices and consumes too much water.

The association said 1 gal ethanol requires 3 gal water, while the same volume of gasoline requires 2.5-8 gal.

In addition, the association said food prices are more dependent on oil costs than on corn - an assertion that is rejected by the oil industry.

Bookmark Simon Robinson’s Big Biofuels Blog for some independent thinking on biofuels

By: Al Greenwood
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