RFA: 2006 Ethanol Production, Demand Up More Than 25%
The Renewable Fuels Association (RFA) announced last week that domestic October ethanol production tied the all-time high set in September 2006 by producing 333,000 barrels per day (b/d), according to data released by the Energy Information Administration (EIA).
The U.S. ethanol industry was averaging 310,000 b/d of production through October, an annualized volume of 4.75 billion gallons. Industry estimates show ethanol production reaching 4.9 billion gallons for the year, an increase of more than 25 percent from 2005.
“The U.S. ethanol industry is rising to the challenge of helping set America on the path of growing energy independence,” said RFA President Bob Dinneen. “The rapid growth in ethanol demand seen in 2006 was mirrored by our industry’s commitment to increasing ethanol production. The result has been one of the most dynamic and fast-growing energy sectors anywhere in the world.”
Demand for ethanol has also soared in 2006. October demand was 391,000 b/d, up from 278,000 b/d in 2005. For the year, demand has averaged 339,000 b/d or more than 4.3 billion gallons. Total demand for 2006 will greatly exceed 5 billion gallons, more than one billion gallons over the requirement of the Renewable Fuels Standard (RFS).
Currently, 110 grain ethanol biorefineries have the capacity to produce more than 5.3 billion gallons of ethanol ethanol. An additional 79 construction projects are underway that will add nearly 6 billion gallons of new ethanol production capacity.