Profitability of Ethanol Production in the US – A Producer’s Perspective
Today, increasing world oil prices and the dependence of most countries on imported fuel poses a serious political and economic threat. In this backdrop, more and more countries are trying to reduce their dependence on foreign oil. Since, Bio-fuels are being considered as potential substitutes of oil to achieve the national security objective, countries are trying to develop and expand the same. Recently many countries have come up with policies to increase the proportion of biofuels in their total oil usage. At least, 17 countries at the national level and 36 states/provinces in the US have mandates for blending biofuels into vehicle fuels. Most mandates require blending 10–15% ethanol with gasoline or blending 2–5% biodiesel with diesel fuel. In addition, most mandates are recent, enacted over the past 2–3 years. In addition to mandated blending, several new biofuels targets and plans are also defining the future levels of biofuels use. Driven by policy support, the global markets for biofuels have currently entered a phase of rapid, transitional growth leading to both uncertainty as well as opportunity. Production of biofuels (ethanol and biodiesel) exceeded 67 billion liters in 2007.
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Profitability of Ethanol Production in the US – A Producer’s Perspective Reference Code: GDAE0009VPT Publication Date: JUL 2008 Alternative Energy Viewpoint GDAE0009VPT / Published JUL 2008 © GlobalData: This brief is a licensed product and is not to be photocopied Page 1 Table of Contents 1 Table of Contents 1 Table of Contents 2 1.1 List of Tables 4 1.2 List of figures 5 2 GlobalData Viewpoint 6 2.1 Summary 6 3 Profitability of Ethanol Production in the US – A Producer’s Perspective 7 3.1 Introduction 7 3.2 The US Ethanol Market 7 3.3 Ethanol Production Profitability 8 3.4 Conclusion 10 3.5 Notes 10 4 Recent Developments 12 4.1 Jun 27, 2008: VeraSun To Launch Ethanol Blend 12 4.2 Jun 27, 2008: Mascoma Announces Strategic Relationships To Build Cellulosic Ethanol Plant in Michigan 12 4.3 June 25, 2008: VeraSun Delays Startup Of Hankinson, North Dakota, Biorefinery 14 4.4 June 23, 2008: Novozymes To Build New Facility In Nebraska To Meet Future Demands F
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