26 February 2010 22:50 [Source: ICIS news]
HOUSTON (ICIS news)--US ethanol production in 2009 was 10.75bn gal, an increase of 16.5% from 9.23bn gal the previous year, a US ethanol group said on Friday.
“Despite trying economic circumstances, America’s ethanol producers once again rose up to meet the challenges the nation has put before it,” said Renewable Fuels Association (RFA) president Bob Dinneen.
US ethanol demand, as calculated by the RFA, totalled 10.84bn gal last year, a 12.6% increase from 9.63bn gal in 2008.
Ethanol production in December 2009 hit an all-time high of 1.02bn gal, the RFA said, citing data from the US Energy Information Administration (EIA).
The association expects production to increase in the coming months, citing the restart of facilities that were idled and are slowly coming back on stream.
But increased US ethanol production has triggered some concerns the market may become oversupplied.
US ethanol prices dropped this week, despite steady crude and gasoline prices, with sources citing demand and oversupply fears as the factors pressuring the biofuel.
The RFA said ethanol demand in December was 976.2m gal. That is down from 984.5m gal in November, but up from 916.5m gal one year earlier.
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