Industrialinfo.com Spotlights Ethanol Industry Growth, Future and Policy Making on Industry Today Radio Program

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). The U.S. ethanol market continues to set monthly production records and by the end of 2003, the industry is expected to have its best year in history producing over 3.7 billion gallons.

Much of the growth over the recent years can be attributed to the efforts of America's hard working farmer. U.S. Ethanol production today is already at a level that was not projected until 2006, and has experienced a 45% growth rate over the past three years.

Energy related agricultural projects continue to be the fastest growing sector of the agricultural industry, with projected spending of over $5.4 billion in the coming years. Ten new ethanol plants have gone into operation so far in 2003 bringing another 274 million gallons per year to the market and eleven plants currently under construction should be completed by the end of the year.

Growth in the ethanol industry hinges on the passing of the energy bill and the Renewable Fuels Standard (RFS). So far congress has not been able to agree on revisions to the energy bill. Much of the hesitation surrounding the renewable fuels standard portion of the energy bill is that congress fears a monopoly in the ethanol market.

Archer Daniels Midland holds some 40 to 45 percent of the domestic ethanol market. Last year, in anticipation of future needs for ethanol, the ethanol giant spent over $700 million to acquire the number two ethanol producer Minnesota Corn Processors that had a six percent market share.

Congress is scheduled to start work on a final compromise energy bill within the next 20 days. The senate passed their version and the legislation is going back to the house before it goes into a final selection committee chaired by both the house and senate.

Oil prices are again playing havoc with the American economy. The U.S. economy is facing the most significant period of sluggish growth in more than a decade and high oil prices are a major contributor to the current economic slowdown. The only economic sector that is currently posting gains in the economy is the ethanol industry. Growth of the ethanol industry and renewable fuels and its benefits to rural America hinge on the passing of the energy bill.

For a unique, half hour discussion focusing on spending trends in the synthetic fuels industry, with Jay Brunson from Industrialinfo.com tune in to Crazy Al's Radio Party Industry Today segment, Monday morning September 8, 2003 at 8:30 am (EST). The radio show can be accessed from any computer at www.industrialinfo.com.

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