May 11, 2007

ADM says US corn-based ethanol to reach 14 billion gallons

The production capacity for US ethanol made from corn could reach 14 billion gallons, more than double from today's levels, an executive from Archer Daniels Midland Co--the largest US ethanol producer--said on Thursday (May 10).

In a keynote address at a conference on ethanol finance and investment in Chicago, John Rice, executive vice president at ADM, said the company believes ethanol could reach the volume with full ten percent blend with gasoline.

The Renewable Fuels Association said ADM says US corn-based ethanol to reach 14 billion gallons The association said production capacity could rise to 6.5 billion gallons this year as many new plants have mushroomed around the country.

Biofuels are gaining a foothold as an alternative energy over increasing concerns about carbon emissions linked to global warming, high oil prices and instability in crude oil producing regions such as the Middle East.

ADM is seeking new alternatives other than corn to produce ethanol such as using the fibre in the corn kernel in addition to the starch. 

Rice said ADM is about two years away from producing cellulosic ethanol from existing feedstocks and can boost their ethanol production by 15 percent without putting an additional ear of corn.

Rice emphasised that ADM is eager to convert more corn fibre into ethanol rather than animal feed as Europe's rebuff on US genetically modified corn will result to a glut in animal feed exports, thus, the company's focus to ferment the corn grain into ethanol.

ADM is investing US$2.5 billion into two new US ethanol plants, two new US biodiesel plants and an ethanol plant in Brazil.