biofuel

Rising gasoline consumption could allow the EPA to set the ethanol mandate higher than it originally proposed, says Reuters. It says an industry source says there is enough leeway for EPA to set the mandate at 13.6 billion gallons for this year, compared to its November proposal of 13 billion gallons for corn-based ethanol.

A multi-university study examined the barriers to economically priced biofuels from grass, crop debris and wood. Using expertise in biomass processing, catalyst design, reaction engineering, and process modeling, the team identified "the primary cost drivers" in so-called advanced biofuels and "suggests that increasing efficiency in wastewater treatment and decreasing catalyst costs could reduce that amount to $2.88 per gallon," compared to the current price of $4.75 for biomass-derived jet fuel, says a Syracuse University summary.

Ethanol profitability hit a record high of $4.50 a bushel in the last week of March, $2 above the previous record, for a "representative Iowa ethanol plant," says economist Scott Irwin of U-Illinois at farmdocdaily. Profits surged because of high gasoline prices, comparatively low costs for corn, large exports, low inventories and a sluggish transport system.

Using corn residues - stalks, husks and cobs - to make biofuels appears to create more carbon dioxide over their life cycle than the target set by federal standards, says research at the University of Nebraska.

The government could issue an updated target for biofuel use by late spring or early summer, said EPA administrator Gina McCarthy at the North American Agricultural journalists meeting.