Bio-Fuels -- Ethanol and Biodiesel
Ethanol
Today, about 40% of the nation's ethanol plants are owned by farmers and other local investors. Ethanol plants under construction include locally owned projects as well as those of large corporate interests with the financial resources to scale up the size of facilities to meet growing demand.
Today corn is the primary feedstock for American ethanol production (see Figure 2 below), and some grain sorghum is also used in the drier areas on the periphery of the Corn Belt. Ethanol can also be made from a variety of other products, such as wheat, barley, sugar cane or beets, cheese whey, or potatoes. In the coming years, cellulosic feedstocks will also be used for ethanol production. Products like corn stalks, grain straw, rice hulls, sugarcane bagasse, native grasses like switchgrass, wood chips, or even municipal waste can be converted to ethanol. Research efforts continue to make today’s technologies utilizing these feedstocks more cost-effective, enabling commercial scale use.
source: American Coalition for Ethanol
US ethanol production has tripled over the past five years. Many of the 141 ethanol production facilities currently operating in the US are preparing to expand and 72 more are under construction at this time.
The Renewable Fuels Standard within the Energy Independence and Security Act of 2007 will transform the ethanol sector, calling for nationwide use of at least 20.5 billion gallons by 2015 and 36 billion gallons by 2022.
As a direct result of the increases in domestic demand for ethanol called for in this legislation, major investments in ethanol production will be required. These investments will provide opportunities to companies including SectorFive to serve as technology suppliers to the ethanol sector.
Biodiesel
Sales of biodiesel fuel in America have increased from 500,000 gallons in 1999 to over 250 million gallons in 2006. While the 148 plants currently operating in the US average 9.5 million gallons per year, plants under construction average twice that.
Aug 2007 marked the opening of the nation’s largest biodiesel plant, Imperium Renewables, with an annual capacity of 100 million gallons. It is expected that additional large capacity plants will be constructed in the next few years to meet increasing demand. HR 6, the Energy Independence and Security Act of 2007, was signed into law by President Bush on December 19, 2007. The Renewable Fuels Standard increases the minimum requirement in the diesel pool from 500 million gallons in 2009 to 1 billion gallons in 2012. According to Joe Jobe, CEO, National BioDiesel Board, this will create a stable, viable domestic market for biodiesel and accelerate the addition of new plants and additions to capacity at existing plant locations. Demand from biodiesel producers to increase capacity creates opportunities for SectorFive to manufacture and install plant components.