2009 could be a big year for midlevel ethanol blends. UL certified E85 fuel dispensers and blender pumps should be available by the first half of the year. In addition, Congress is expected to address tax legislation that limits fuel retailers' ability to claim credits for blender pumps distributing E85. Testing of midlevel blends will continue, and an E20 fuel waiver request could be submitted to the U.S. EPA before the end of the year.
Europe has an appetite for sustainable ethanol. Brazil is hungry to supply the demand.
Chances are the United States will bring into play a mandatory carbon emissions reduction program sooner rather than later. In the second of a two-part series, EPM explores the domestic carbon trading market and what the future could hold for ethanol producers.
The food-versus-fuel debate, high corn prices and the country's economic crisis have taken a toll on the corn-based ethanol industry. Despite its difficulties, the development of cellulosic ethanol wouldn't be where it is without its predecessor. Now it's just a matter of getting the necessary financing to commercialize the industry.
Market gyrations can temporarily obscure the fundamentals. Although corn prices dipped in response to the flagging stock market, demand for corn should continue to pressure supplies. Ethanol producers also need to track crude oil prices as they have an increasingly important impact on prices. EPM talks to Iowa State University economists who have been plotting the numbers.
By Bryan Olthof
November 03, 2008
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