US unlikely to reach renewable fuel goal - consultant

24 March 2009 18:39  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS news)--The US is unlikely to reach its mandated goal of 36bn gal/year of renewable fuel consumption by 2022, an industry consultant said on Tuesday.

Renewable fuels will have an impact on petroleum demand although it will not be as great as mandated by federal legislation, said Tom Hogan, senior vice president of the consulting firm Turner, Mason and Company. He spoke at the 107th annual meeting of the National Petrochemical and Refiners Association (NPRA).

In the Energy Independence and Security Act of 2007, the US government mandated that annual consumption of renewable fuels, which includes biofuels from ethanol and biomass diesel, must reach 36bn gal by the year 2022.

However, Hogan said he doubted the ability of the US to reach the 36bn-gal target, citing the fact that 16bn gallons must be made from cellulosic ethanol, which is based on an ‘unproven’ technology.

If fully executed, Hogan said, the renewable fuels mandate would demand for petroleum products and lower demand for crude oil by up to 15%, based on current demand levels.

“Oil demand will decrease by 1.6m bbl/day if [the renewable fuels mandate is] implemented,” Hogan said.

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By: Staff Reporter
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