The Renewable Fuels Association (RFA) has announced that U.S. ethanol production increased in May to 293,000 barrels per day (b/d). That is an increase of more than 56,000 b/d from May 2005. Additionally, demand for ethanol also rose in May, setting a record at 349,000 b/d.
“The decline in imports from April to May explains much of the ‘distressed’ situation we have seen in the spot market for ethanol in recent weeks,” said RFA President Bob Dinneen. “Imports from countries like Brazil were late arriving and caused some to become unnecessarily nervous about ethanol supplies. Fortunately, the U.S. ethanol industry has grown and continues to grow at a pace sufficient to meet surging demand for this cleaner-burning, domestically-produced renewable fuel.”
Currently, 101 ethanol biorefineries nationwide have the capacity to produce more than 4.8 billion gallons annually. There are 36 ethanol refineries and 7 expansions under construction with a combined annual capacity of more than 2.5 billion gallons.
