According to the Energy Information Administration (EIA), ethanol production in the country is expected to reach an average of 1.03 million barrels per day by the end of this year, which could be a record-breaking annual output.
Ethanol is a renewable fuel made from corn and other plant materials, and it has become a popular alternative fuel for cars. With the impressive and growing market of ethanol, the industry is in a good place this year. In fact, the energy industry will likely need more above ground steel tank and other storage facilities just to accommodate the increased ethanol production alone.
In terms of consumption, the industry used an average of approximately 940,000 barrels per day in 2016. The EIA predicted a slight uptick in consumption between 2017 and 2018.
The expected increase in usage would allow ethanol to account for almost 10.1% of the total gasoline resources during these two years, according to the report. Apart from ethanol, the EIA provided insights on the short-term prospects for renewable energy sources, as well.
In the electric power sector, the total generation from renewable energy would rise by 11% this year. For liquid biofuels, the report estimated its figures on volumes for biomass-based diesel, using both of the proposed and final Environmental Protection Agency’s Renewable Fuel Standards.
The final rules would have the greatest impact on biomass-based diesel consumption, the EIA said. On the other hand, it expects the standards to help in meeting the target consumption of such as biomass-based diesel, advanced biofuel, and total renewable fuel sources.
The EIA figures provide a rather bright future for the entire U.S. energy industry. The figures can be rooted in the fact that the use of the renewable ethanol as a vehicle fuel is becoming increasingly popular not only in the U.S. but in foreign countries, as well.