So You Want To Build An Ethanol Plant? Well Ya Better Get Started

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Getting an ethanol plant project going can take a minimum 16 months before the first shovel of dirt is turned. Forming an organization, securing seed money, performing feasibility studies, and developing a business plan and equity are key drivers to the success of an ethanol project.

Today, there are over 85 ethanol plant projects planned or under construction in North America. That number represents over 2 billion gallons per year of ethanol capacity that is scheduled to come on-line by 2005. Add that number to the existing 2.1 billion gallons per year already being produced domestically and you come real close to the 5 billion annual capacity projected for the market.

Jay Brunson, Synthetic Fuels Manager for Industrialinfo.com, said, "Projecting how big the domestic ethanol market will actually be in 2005 is like looking into a crystal ball. If all of the 21 states considering it pass legislation to stop using MTBE, only 3.9 billion gallons per year of ethanol will be required in reformulated gasoline based on a 5.7% blend."

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Ethanol Potential: Click Here

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Parts of the energy bill currently on the Hill will eliminate the oxygen requirement, establish a renewable fuels standard, and give small ethanol producers tax credits. If the bill is signed, there could be no limit to ethanol production.

Cooperatives that do not currently have construction underway have already missed another year to have their crops processed at their own plants. In another seventeen to eighteen months, another season could slip by.

The build-out of the ethanol industry is underway and the American farmer is up to the challenge. Keys to success lie in leadership, sound business planning, a good technology provider, and engineering & construction that is ready to get started today.