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Alternative Fuels Market Stands Still as Emerging Second-Generation Plants Still Waiting to Emerge

Not a single ethanol or biodiesel plant has received funding to begin construction in 2009-10 because of a stingy credit market, lenders keeping funds unavailable, and the Department of Energy not releasing loan guarantees. And considering that in the U.S., there are more than 1 billion gallons of ethanol and 599 million gallons of biodiesel sitting idle, who would want to build in this time of tight margins and market uncertainty?

The U.S. Environmental Protection Agency did raise the upper ethanol blending limit to 15%, but this will barely move the needle in terms of increasing production capacity. Only vehicles manufactured since 2007 will be able to use this fuel, until further testing can show that higher ethanol blends will not harm older-model cars. However, there is a push to increase the amount of E-85 pumps across the country to increase distribution points for those driving flex-fuel vehicles.

Globally, the Alternative Fuels market continues to grow as other countries turn to biofuels to wean themselves off of fossil fuels and gain energy independence.

Click here to join Jay Brunson, the vice president of research for the Alternative Fuels Group at Industrial Info, along with the host of "Navigating the Currents of Change," to discover what to expect in the industry in the coming year.

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR'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.