US ethanol use to hit 11.2 billion gallons in 2012: EIA

Washington (Platts)--5Dec2006

US ethanol consumption should jump to 11.2 billion gallons in 2012, well
beyond the 7.5 million b/d requirement of last year's energy policy act, the
US Energy Information Administration said Tuesday.

By 2030, US ethanol consumption should grow to 14.6 billion gallons,
representing about 8% of total gasoline consumption by volume, the EIA, the
statistical arm of the US Energy Department, said in its Annual Energy Outlook
forecasting energy supply and prices out to 2030.

In addition to legislation supporting the use of renewable fuels like
ethanol, greater use of the fuel is also expected to be spurred by an increase
in the availability of corn and biofeedstock supplies and price advantages in
motor gasoline blending, the EIA said.

Alternative sources of distillate fuel are also projected to grow to over
7% of the total distillate pool by 2030, when consumption of biodiesel, which
was supported by tax credits in last year's energy law, reaches 400 million
gallons and distillate produced from coal-to-liquids technology reaches 5.7
billion gallons, the report said.

The EIA added that ethanol production would continue to be dominated by
corn-based production as a result of cost advantages and availability of tax
credits.

Growth in cellulosic ethanol is expected make few strides in the forecast
period, with production reaching just 300 million gallons in 2030 as a
result of the 2005 energy law provisions.

--Cathy Landry, cathy_landry@platts.com

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