Corn for Ethanol Production Continues to Climb: Phillips McDougall
13 February 2012 In 2011, production estimates indicate more than 13.8 billion US gallons of ethanol have been produced, and 127 million tonnes of corn was used in the process, according to a Phillips McDougall report.
The tonnes of corn used in production equates to 40.5% of total 2011 ethanol production. The manufacturing process has become increasingly efficient since 2009 as ethanol production has increased ahead of corn usage.
Current forecasts under the US Renewable Fuels Standard target ethanol production to reach 15 billion US gallons by 2015. As of 2012, current capacity is at 14.74 billion gallons, according to Phillips McDougall.
Despite an increase in corn production expected in the 2011/12 year, corn stock levels continue to decline due to a significant increase in consumption – total corn production is expected to be 868.06 million tonnes, up from 827.35 the previous year.
In order to reduce production dependency of ethanol on maize, the remaining 21 billion gallons of the 36 billion gallons of ethanol required to be produced by 2022 must be made using biomass and cellulosic components.
A 25-million-gallon cellulosic plant is under construction in Iowa and expected to begin production in 2013. In addition, the US EPA approved gasoline and ethanol blends of 15%.
Corn prices are forecasted to remain stable as stock levels are maintained throughout 2012 and into 2013, according to Phillips McDougall. However, the feasibility of small ethanol producers maintaining profit levels with the possible disappearance of farming subsidies is in question.
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