Ethanol
Industry Sets Another Monthly Production Record in June, NCGA Notes (9-9-04)
The ethanol industry set another monthly production record in June, proving
that the market expansion efforts of the National Corn Growers Association
(NCGA) and other renewable energy proponents are indeed paying off. The U.S.
ethanol industry produced 222,000 barrels per day (b/d) in June, according
to the U.S. Energy Information Administration (EIA).
June’s record output
marks the ninth consecutive monthly production record. Ethanol production
was up nearly 23 percent compared
to June 2003 when
the production level was at 181,000 b/d.
“Ethanol is undoubtedly one of the most notable success stories in agriculture
today,” said NCGA Chairman Fred Yoder. “Ethanol demand continues
to surge, and this new production record shows that the industry is willing
and able to keep pace with this demand.”
Ethanol production is expected to surpass the 3.3-billion-gallon mark in
2004, up from 2.81 billion gallons in 2003. According to the Renewable Fuels
Association (RFA), the 81 ethanol plants in operation have the capacity to
produce more than 3.4 billion gallons annually. RFA reports that 10 additional
plants are under construction, adding an additional 356 million gallons of
capacity. Seven of the 10 plants under construction are farmer-owned ventures.
If Congress passes the Renewable Fuels Standard, ethanol production will likely
increase at a rate of nearly 13 percent per year, according to ProExporter
Network, a Kansas City-based consulting firm. The industry could be producing
approximately 5.7 billion gallons of ethanol by 2011, according to PRX.
“As consumers become more aware of the economic, environmental and energy
security benefits provided by ethanol, demand will increase even more rapidly,” Yoder
said. “And we need to be prepared for that. The underlying message here
is that we need Congress to pass a comprehensive energy bill with the Renewable
Fuels Standard immediately.”