Energy Report Says Ethanol Production Capacity Adequate

February 13, 2002

A report completed for the U.S. Department of Energy (DOE) on the infrastructure requirements for an expanded ethanol industry finds that "no major infrastructure barriers exist" for producing and using more than 5 billion gallons of ethanol across the country each year.

"This study produces empirical support for the transportation industry's recent statements that they have the capability and the capacity to move large quantities of ethanol from coast to coast," said Bob Dinneen, Renewable Fuels Association president. "This report leaves no reasonable doubt that a dramatic expansion of the domestic ethanol industry can be achieved without supply disruptions or distribution problems. Whether replacing MTBE in California or meeting the demand for ethanol created by a robust renewable fuels standard (RFS), the U.S. ethanol industry can and will respond."

The report, Infrastructure Requirements for an Expanded Fuel Ethanol Industry, analyzed the infrastructure requirement for expanding ethanol use, including transportation, distribution and retailing issues. The study assumed ethanol production of 5.1 billion gallons per year, comparable to pending legislation establishing an RFS. According to the study, 495 terminals (58.6% of operating terminals) would offer ethanol. Also:

The full report can be found on the U.S. DOE website at: www.afdc.doe.gov/pdfs/6235.pdf