guiseppewv
03-13-2006, 08:55 AM
The nation's growing thirst for ethanol is leading to a miniboom in plant construction — even far from the Corn Belt, which has been home to most production.
"It's a little bit of a dot-com atmosphere," says John Skelley, president of Arizona Grain, an equity partner in a new ethanol plant being built outside Phoenix.
Thirty-three ethanol plants are under construction, and another eight of the 95 plants in operation are being expanded, the Renewable Fuels Association reports.
About half the new construction began in the year since President Bush signed an energy bill that encourages greater use of ethanol as an ecologically sound fuel additive.
Ethanol is a plant-based alcohol fuel that's seen as a way to lessen U.S. dependence on foreign oil.
Besides the energy bill, ethanol makers are getting a boost from Detroit, where automakers are promoting vehicles that can burn E85, a blend of 85% ethanol and 15% gasoline. The more common gasohol is 10% ethanol.
The ethanol supply will more than double in the next decade, from 4 billion gallons produced last year to 9.8 billion by 2015, estimates a new report by John Urbanchuk of consulting firm LECG.
Current producers are at full speed. The 16 plants operated by Broin Cos. of Sioux Falls, S.D., are at capacity.
"It's a gold rush right now," CEO Jeff Broin says.
Builders say they have more work than they can handle. Ethanol plant construction firm Fagen in Granite Falls, Minn., is maxxed out through 2008. "We're turning down work every day," President Ron Fagen says.
Some of the expansion is from existing operators. Archer Daniels Midland, the largest ethanol producer, plans to increase from 1.1 billion gallons a year Monday to 1.5 billion by 2008. Last month, ADM announced a plant will be built in Columbus, Neb.
But some plants are planned outside the Corn Belt. In the West:
•California. Pacific Ethanol is building a $50 million plant in California's central valley, due to open later this year. The plant will use corn shipped in by rail and produce cattle feed as a byproduct. The plant is close to one of the nation's largest dairy herds.
"You've got to put them where the cows are," CEO Bill Jones says.
•Arizona. Skelley says a $62 million ethanol plant being built by Pinal Energy was under consideration for five years.
It, too, will depend on corn shipments and will produce cattle feed for local herds.
• Hawaii. Five proposals have been floated for plants in the state, says Maria Tome, a state engineer.
Some call for converting sugar cane or molasses into ethanol.
http://www.usatoday.com/money/industries/technology/2006-03-12-ethanol-boom_x.htm
This is a good thing but unless we increase production quickly this is not going to make a dent in our oil consumption. From what I understand, there are 42 gallons in a barrel. From a barrel of oil you produce ~19.5 gallons of gas + a bunch of other stuff (heating oil, diesel, etc..). Take this into account and that means right now we produce ~11 million gallons of ethanol per day and by 2015 we will be around ~27 million gallons of ethanol per day. That is a great start but don't we (the US) consume around 20 million barrels per day? That is approx 400 million gallons of gas per day.
"It's a little bit of a dot-com atmosphere," says John Skelley, president of Arizona Grain, an equity partner in a new ethanol plant being built outside Phoenix.
Thirty-three ethanol plants are under construction, and another eight of the 95 plants in operation are being expanded, the Renewable Fuels Association reports.
About half the new construction began in the year since President Bush signed an energy bill that encourages greater use of ethanol as an ecologically sound fuel additive.
Ethanol is a plant-based alcohol fuel that's seen as a way to lessen U.S. dependence on foreign oil.
Besides the energy bill, ethanol makers are getting a boost from Detroit, where automakers are promoting vehicles that can burn E85, a blend of 85% ethanol and 15% gasoline. The more common gasohol is 10% ethanol.
The ethanol supply will more than double in the next decade, from 4 billion gallons produced last year to 9.8 billion by 2015, estimates a new report by John Urbanchuk of consulting firm LECG.
Current producers are at full speed. The 16 plants operated by Broin Cos. of Sioux Falls, S.D., are at capacity.
"It's a gold rush right now," CEO Jeff Broin says.
Builders say they have more work than they can handle. Ethanol plant construction firm Fagen in Granite Falls, Minn., is maxxed out through 2008. "We're turning down work every day," President Ron Fagen says.
Some of the expansion is from existing operators. Archer Daniels Midland, the largest ethanol producer, plans to increase from 1.1 billion gallons a year Monday to 1.5 billion by 2008. Last month, ADM announced a plant will be built in Columbus, Neb.
But some plants are planned outside the Corn Belt. In the West:
•California. Pacific Ethanol is building a $50 million plant in California's central valley, due to open later this year. The plant will use corn shipped in by rail and produce cattle feed as a byproduct. The plant is close to one of the nation's largest dairy herds.
"You've got to put them where the cows are," CEO Bill Jones says.
•Arizona. Skelley says a $62 million ethanol plant being built by Pinal Energy was under consideration for five years.
It, too, will depend on corn shipments and will produce cattle feed for local herds.
• Hawaii. Five proposals have been floated for plants in the state, says Maria Tome, a state engineer.
Some call for converting sugar cane or molasses into ethanol.
http://www.usatoday.com/money/industries/technology/2006-03-12-ethanol-boom_x.htm
This is a good thing but unless we increase production quickly this is not going to make a dent in our oil consumption. From what I understand, there are 42 gallons in a barrel. From a barrel of oil you produce ~19.5 gallons of gas + a bunch of other stuff (heating oil, diesel, etc..). Take this into account and that means right now we produce ~11 million gallons of ethanol per day and by 2015 we will be around ~27 million gallons of ethanol per day. That is a great start but don't we (the US) consume around 20 million barrels per day? That is approx 400 million gallons of gas per day.