October 13, 2006

ADM eyes corn husk for fuel

Corn husks and other cellulosic material would be used to meet the world's growing appetite for food and fuel apart from just corn and soy, said the chief executive of the largest US ethanol producer Archer Daniels Midland Co.

ADM CEO Patricia Woertz pointed out the future of alternative energy was not in a single feedstock or industry and the company thus wanted to venture into making cellulosic ethanol from corn husks.

Woertz was hopeful the move would boost their ethanol production by 15 percent without adding to corn usage.

The country might be able to pump out some 7 billion gallons by 2008 from the present 5 billion, Woertz said. A nationwide 10-percent ethanol blend with gasoline would take demand to 14 billion gallons, she said.

While the USDA estimated the amount of corn used to make ethanol to rise 34 percent to 2.15 billion bushels in the current year, corn ending stocks were forecast to fall 40 percent to 1.22 billion bushels.

Amidst this ever tightening supply, the government has given generous subsidies to ethanol producers in a bid to increase production, prompting large agric-companies like Cargill Inc to voice their concerns.