Corn expert predicts 100% increase in biofuel demand for US corn by 2009 as corn acreage falls
An industry researcher speaking at the International Corn Industry Conference in Dalian, China, projected US ethanol production capacity will increase from 6.7 billion gallons today to 20.43 billion gallons in August 2009. He projected that the ethanol industry would consume 7.46 billion bushels of corn in in the 2009-10 up from 3.62 billion in 2007-08. Meanwhile, US corn acreage is expected to fall by 3 million acres in 2008 due to increased soybean planting.
The US has projected a 35 million gallon ethanol target for 2015, which would bring ethanol production capacity to 10 million gallons in 2009 if the US marches toward its goal at a steady rate. The presentation did not suggest why the extra production capacity would come online at this time, and with US ethanol projects finding tough credit conditions it is difficult to see how this growth rate could be obtained.
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