12-03-08

The United States will not meet Congress' mandate to produce more ethanol from waste products over the next 15 years, according to a government forecaster.
America’s new energy law requires the United States to produce 36 bn gallons of biofuels a year by 2022 to help stretch gasoline supplies and reduce oil imports. But only 32.5 bn gallons of the renewable fuels standard will be met by the target date, said Guy Caruso, who heads the US Energy Information Administration. The shortfall will come from a smaller volume of ethanol made from cellulosic sources such as wood chips, switchgrass and other agricultural and forest waste than the law envisions, Caruso told the Senate Energy Committee.

Most US ethanol is made from corn. Many experts believe the increased demand for ethanol production is pushing up prices for grains and thus for the food consumers buy.
"While the situation is very uncertain at this early date, our current view is that available quantities of cellulosic biofuels prior to 2022 will be insufficient to meet the new RFS targets," said Caruso.

Caruso appeared at the hearing to discuss the EIA's revised long-term energy forecast that now reflects the impact of the energy law, which was passed by Congress last December.

Source: www.futurefuelsme.com