EIA: Continued High U.S. Ethanol Margins Spur Production Growth

Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. Energy Information Administration (EIA) reports that continued high margins for ethanol in the U.S. spurred a fifth record level of annual ethanol production in 2017. In addition, record gasoline demand, coupled with the federally mandated Renewable Fuel Standard, which requires the blending of biofuels into motor fuels, helps ensure consistent demand for this renewable fuel. Industrial Info is tracking more than $2.6 billion in U.S. ethanol projects.

The EIA estimates that ethanol production margins at corn ethanol plants in the U.S. averaged 22 cents per gallon, marking the fifth consecutive year that margins have averaged more than 20 cents per gallon. U.S. ethanol production in 2017 was an estimated 1.03 million barrels per day (BBL/d) and set a four-week production record in December, at 1.09 million BBL/d.

While most ethanol plants are located in the U.S. Midwest near a steady supply of corn for feedstock, one of the largest fuel ethanol projects being tracked by Industrial Info is the construction of an ethanol plant and accompanying 49.9-megawatt (MW) cogeneration unit in Brawley, California. Construction is planned to kick off in the third quarter of this year and be completed in late 2020. The plant will produce 66 million gallons per year of ethanol and 930 million cubic feet per year of biomethane. The facility will use sugar cane as feedstock. Uni-systems Incorporated (Key Biscayne, Florida) is providing technology for the ethanol portion of the facility. For more information, see Industrial Info's project report.

The cogeneration unit will use sugar cane bagasse as feedstock and will provide 16.3 MW of power to the ethanol plant and 33.6 MW to the grid. Saipem SpA (San Donato Milanese, Italy) is providing engineering, procurement and construction. For more information, see Industrial Info's project report.

In Atlantic, Iowa, Elite Octane LLC (Carroll, Iowa) is underway with construction of a grassroot fuel ethanol plant that will that will process 40 million bushels per year of corn to produce 120 million gallons per year of ethanol. The project was restarted early last year after being placed on hold for several years and is expected to be completed this summer. Fagen Incorporated (Granite Falls, Minnesota) is performing design-build work. For more information, see Industrial Info's project report.

Showing the coast-to-coast spread of U.S. ethanol production, in Clewiston, Florida, Southeast Renewable Fuels LLC (Clewiston) plans to kick off construction of a 21.11 million-gallon-per-year ethanol plant that will use sweet sorghum as feedstock. The facility also will have a 22.5-MW powerhouse for use at the facility, with excess power supplied to the grid. Construction is expected to begin in the second quarter of this year and be completed in summer 2019. Uni-systems is technology provider. For more information, see Industrial Info's project report.

Crops are not the only thing from which ethanol can be made, and in Rosemount, Minnesota, Enerkem Incorporated (Montreal, Quebec) is in the final planning stages for a grassroot waste-to-ethanol production plant. The facility will process 400,000 tons per year of municipal solid waste into 20 million to 40 million gallons per year of ethanol. Construction is planned to kick in the fourth quarter of this year and be completed in the first half of 2020. For more information, see Industrial Info's project report.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.