The U.S. ethanol industry has 213 plants with capacity to produce more than 15 billion gallons a year. With the EPA proposing ethanol use at close to current production levels, “there is little need for new plants in a saturated market,” says Reuters after interviewing experts and industry sources. The news agency quoted an official at Ascendant Partners as saying, “We have the supply handled – we’re a little long on supply.” The industry produced 14.3 billion gallons last year, including 1 billion gallons for export. The EPA has proposed an ethanol mandate of 13.4 billion gallons this year.
Reuters says the Dakota Spirit AgEnergy plant in North Dakota “that began operating last month was the first such start-up in five years and, possibly, the last for the foreseeable future.” A plant is proposed for South Dakota but has to pass a local referendum on its site, and Rex American Resources Corp. is deciding whether to build a plant in Iowa. “No other new ethanol plants are in the works,” industry sources said.”
More than 5 billion bushels of U.S. corn are expected to be used in making ethanol this year, equal to 37 percent of the record 2014 harvest. The USDA forecast similar corn-for-ethanol use in the coming year.