US Became Top Global Producer of Ethanol in 2005
10 March 2006
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| The US became the top ethanol producer in 2005. |
The United States slipped past Brazil to become the world’s largest producer of ethanol in 2005, according to figures from F.O. Licht as reported by the Renewable Fuels Association.
US producers delivered 4.267 billion gallons of ethanol of all grades (fuel, beverage and industrial) in 2005, up 20.6% from the 2004 level, and just exceeding Brazil’s total of 4.227 billion gallons.
Of those 4.3 billion gallons, 3.904 billion were fuel ethanol, up 15% from the 3.4 billion in 2004.
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| With demand exceeding supply, the US imported 133 million gallons of ethanol in 2005. |
The 2005 production level works out to an average of 255,000 barrels of ethanol per day. Production—and demand—is rapidly increasing, however. In December 2005, US ethanol production hit 364.4 million gallons—an average of 280,000 barrels per day.
Demand, however, increased to 403.2 million gallons, or 310,000 barrels per day. The US made of the difference by tapping into stocks, and by importing 32.2 million gallons.
December is not the only month the US has had to resort to imports and tapping stocks to meet growing demand. For all of 2005, the US imported 133 million gallons—an average of 8,700 barrels per day.
Who is using all of this ethanol? What's the breakdown by state? By type of vehicle? By owner (private indivual vs. company fleet vs. gov't)?
Posted by: stomv | 10 March 2006 at 06:08 AM
A majority of it is used as an oxygenate in gasoline in at least 36 states. It's in concentrations of 10% or less.
Posted by: Mike | 10 March 2006 at 06:21 AM
Your Taxpayer Dollars at Work.
Posted by: Robert Schwartz | 10 March 2006 at 08:02 AM
I still don't understand why the U.S. taxes the hell out of ethanol imports. Our taxpayer dollars at work to protect an inefficient domestic industry that can't compete with imports.
Posted by: rodney | 12 March 2006 at 07:10 PM
If our heavy duties on imported ethanol reduce our demand for Brazilian product -- and imported ethanol would surely be Brazilian, as no one else could supply the quantities we need -- then maybe we are slowing the expansion of sugarcane plantations down there, which grow at the expense of the rain forest.
Posted by: NBK-Boston | 12 March 2006 at 09:30 PM
Does anyone have any documentation on this accusation that Brazil is logging rainforest to grow sugarcane? If you have, pleas let me know!
Posted by: Johannes Fjell Hojem | 13 March 2006 at 01:10 AM
Actually Sugarcane has a higher yield and hence uses lesser land than corn.
The tax dollar (50 cents / gallon) given to ethanol is equal than what is given to gasolene. Divide $100 billion (part of defence budget that protects persian gulf) / 200 billion gallons of gasolene/diesel and it will come to 50 cents / gallon.
Of late Ethanol plants with larger capacity are built and they will be able to churn out the fuel at a much cheaper price. Just wait for some more time.
Posted by: Max Reid | 14 March 2006 at 09:06 AM
On clearing rainforest in Brazil to support sugarcane plantations and ethanol production, see:
http://news.bbc.co.uk/1/hi/sci/tech/3703704.stm
See especially the paragraphs in the middle of the article, which state:
"Ironically, it was the quest for "green" alternatives to fossil fuels following the 1970s oil crisis which reduced Murici [an isolated patch of rare Atlantic, as opposed to Amazonian, rainforest -- NBK] to half its former size.
Government incentives to run vehicles on alcohol produced from sugar led to a new wave of deforestation to expand the cane plantations."
Posted by: NBK-Boston | 14 March 2006 at 10:19 AM
Look at this
http://www.ethanolmarketplace.com/030806_news4.asp
77 % of all new light vehicles sold in Brazil in Feb-2006 are flex fueled, its up from 71 % in Dec-2005.
Looks like they will hit 100 % by Dec-2006.
I dont know whether they can supply Ethanol to US, but atleast they can supply to South America and one continent will be using lesser oil.
Posted by: Max Reid | 14 March 2006 at 01:28 PM