Reuters AlertNet Full site
Homepage | Newsdesk | NGO Latest | Crisis briefings | Country profiles | MediaWatch | Jobs | Alerting | Login

NEWSDESK

US Q1 ethanol output seen up 37 pct on new plants
04 Apr 2008 15:33:13 GMT
 Source: Reuters
NEW YORK, April 4 (Reuters) - A fleet of new distilleries boosted U.S. ethanol production during the first three months of 2008 nearly 37 percent from a year earlier to 1.9 billion gallons, an industry watcher said on Friday.

Average daily production of the alternative motor fuel was about 21.4 million gallons per day during the first quarter of the year, up from an average of 15.6 million gpd in the same period of 2007, according to Denver-based Bentek Energy, LLC.

"If this trend continues, 2008 will be another record-setting year for U.S. ethanol production," said Jack Weixel, a Bentek senior analyst.

U.S. ethanol output has risen as the government gives the industry generous incentives in an effort to begin to wean the country off foreign oil. Washington also puts a 54-cents-per-gallon tariff on ethanol imported from Brazil, which vies with the United States for position as the world's largest ethanol producer.

Late last year, the United States mandated the blending of 36 billion gallons per year of alternative fuels like ethanol and biodiesel into gasoline by 2022. Currently, most ethanol is blended into E10 gasoline, or fuel that has about 10 percent ethanol. It would take more than 12 billion gallons to make the entire U.S. gasoline pool E10.

E85, or fuel that is 85 percent ethanol, is also sold in Minnesota and a few other states.

The United States has nearly 150 ethanol plants, up from less than 70 plants five years ago. Total U.S. capacity has topped 8.5 billion gallons per year. Please click [ID:nN03528314].

This year expansions and new plants scheduled to go online could push total U.S. ethanol production to over 7.7 billion gallons if output gains seen like those seen in the first quarter continue, Bentek said. Total production of ethanol was approximately 6.5 billion gallons in 2007.

Average ethanol producers may find it hard to keep earning strong profits despite the industry's growth. Weak margins for distilling U.S. ethanol have prompted several shutdowns and delays in building new distilleries in recent months, though the number of plants in the overall fleet has risen.

Record corn prices above $5 a bushel -- about double those of two years ago -- have pressured margins, which in recent months have averaged about 20 to 25 cents per gallon after conversion costs like natural gas, which fires most distilleries.

Bentek monitors deliveries of natural gas from interstate pipelines to about 30 percent of U.S. ethanol distilleries. It then models those numbers to monthly U.S. ethanol output data, which lags by several months, to estimate real-time U.S. ethanol output.

(Reporting by Timothy Gardner; Editing by David Gregorio)


AlertNet news is provided by
Email this article       Send comments

NGO latest

•  Direct Relief International Recognizes World TB Day 2008
DRI - USA

•  Five-Year Iraq Conflict Has Caused Massive Refugee Crisis; IRC Commission Calls U.S. / World Response 'Grossly Inadequate'
International Rescue Committee

•  CWS situation report: 2008 March tornadoes
CWS

•  CWS appeal: 2008 Fernley, Nevada flood
CWS

•  Direct Relief, Safety-Net Clinics Coordinate for Emergency Response
DRI - USA

MORE >>

Latest news

•  Iraqi casualties at highest level since August

•  FACTBOX-Key facts on Botswana

•  North Korea lashes out at South's new president

•  UK's Browne to make Iraq statement Tuesday-official

•  Hamas TV puppet "kills" Bush for helping Israel

MORE >>

AlertNet news is provided by

Related articles

Breaking stories
US Q1 ethanol output seen up 37 pct on new plants (1 minute ago)

France ready to send doctors for hostage Betancourt (1 minute ago)

AlertNet insight
MEDIAWATCH: What happens to Somalia's refugees after Mogadishu? (1 minute ago)

Aid agency news feed
Direct Relief International Recognizes World TB Day 2008 (1 minute ago)

Blogs
Are the radicals of 1968 the humanitarian hawks of today? (1 minute ago)

Maps
MAP: La Nina floods South America (satellite image) (1 minute ago)


Country information

Facts & figures
United States of America Brazil

Del.icio.us Del.icio.us  |   Digg Digg  |   NewsVine NewsVine  |   Reddit Reddit   
Thumb for /thefacts/imagerepository/RTRPICT/2008-03-22T145735Z_01_IGU04_RTRIDSP_2_BRAZIL-WWF_mainimage.jpg|/thenews/pictures/IGU04.htm
Thumb for /thefacts/imagerepository/RTRPICT/2008-03-22T145549Z_01_IGU03_RTRIDSP_2_BRAZIL-WWF_mainimage.jpg|/thenews/pictures/IGU03.htm
Thumb for /thefacts/imagerepository/RTRPICT/2008-03-22T145416Z_01_IGU02_RTRIDSP_2_BRAZIL-WWF_mainimage.jpg|/thenews/pictures/IGU02.htm
Thumb for /thefacts/imagerepository/RTRPICT/2008-03-22T145233Z_01_IGU01_RTRIDSP_2_BRAZIL-WWF_mainimage.jpg|/thenews/pictures/IGU01.htm
Thumb for /thefacts/imagerepository/RTRPICT/2008-03-11T202533Z_01_ASU103_RTRIDSP_2_PARAGUAY-ELECTIONS_mainimage.jpg|/thenews/pictures/ASU103.htm

An inflatable display in the form of a traditional Brazilian domestic water filter is seen at the Iguacu Falls in Parana March 22, 2008. The display was installed by activists from ...


More pictures | Galleries
Disclaimers |  Copyright |  Privacy |  Contact Us |  Feedback |  About Us |  RSS XML

Last updated:Fri Apr 4 15:31:41 2008