580 mg/year, from its current use of 5 to 7 mg/year.
UPDATE 1-ADM to up annual ethanol output 20 pct by Q4
July 27, 2001 4:34pm
Source: Reuters
(Adds California's current use of ethanol, para 5)
NEW YORK (Reuters) - Archer Daniels Midland said Friday its production of ethanol, for which gasoline-blending demand is growing in California, will reach an annual rate of 950 million gallons late in the year.
In 2000, ADM produced 797 million gallons of ethanol.
Ethanol is mainly produced from corn in the Midwest.
In June, the U.S. Environmental Protection Agency denied a request by California, the nation's most populous state, to opt out of the Clean Air Act, forcing the state--in just 18 months--to use ethanol as an oxygenate in its smog-fighting gasoline. California wanted out of the oxygenate requirement because it banned the other widely used oxygenate, methyl tertiary butyl ether, or MTBE, by 2003 because the EPA-listed possible carcinogen filters into water supplies.
As a result, ethanol use in California is anticipated to grow to 580 million gallons per year, from its current use of 5 to 7 million gallons per year.
Since ethanol's water-retaining tendency prevents it from being shipped via pipeline, California officials have voiced concern about meeting that 580 million gallon target.
William Rukeyser, Assistant Secretary of California's Environmental Protection Agency, has said that at worst, gasoline could rise as much as 50 cents per gallon at the pump due to ethanol shipping problems.
ADM said in the statement that ``completion of several projects at its corn refining plants'' are leading to the gains in production. ADM did not immediately return phone calls inquiring where the additional ethanol would be produced.
Does this seem correct? from 5 to 7 mg/year to 580 mg/year. That is a 8k+ increase? This can't be correct. |
