GoodFuels

USDA’s WASDE report released

The US Department of Agriculture released their latest World Supply and Demand Estimates (WASDE) report this morning.

The report includes final estimates for the size of the 2008 crop, which was the second-largest crop on record. This is a phenomenal achievement given the floods in early 2008 and the late harvest.

Other major findings include:

• The average U.S. corn yield is estimated at 153.9 bushels per acre.

• Corn production is estimated at 12.1 billion bushels in 2008.
  

• Ethanol corn use was reduced 100 million bushels to 3.6 bbu
  

• USDA reduced its price forecast for 08/09 to $3.55-$4.25.

• Food, seed, and industrial use was lowered 35 million bushels, based on reduced demand for sweeteners and starch.
  
• Feed use was reduced 50 million bushels.

• Exports were reduced 50 million bushels.

To read the entire WASDE report in PDF form, click here.

Photo courtesy of *MarS via creative commons license.

USA Today Spotlights Cellulosic

USA Today has a nice feature today on cellulosic ethanol that is pretty well balanced.

The article focuses mainly on the Verenium plant in Louisiana that is using sugar cane waste to make ethanol, but also mentions the other plants underway such as Range Fuels in Georgia using wood waste.

My favorite quote from the article: “The old joke was that cellulosic ethanol was always just five years down the road,” says Andy Aden, a senior chemical engineer at the National Renewable Energy Laboratory. “Now, there’s steel going in the ground.”

There is the obligatory negative comment from ethanol pessimist David Pimentel but overall it’s very positive and optimistic about the future of cellulosic fuel.

RFA’s Bob Dinneen on E&ETV

The Renewable Fuels Association’s president and CEO, Bob Dinneen, was interviewed by E&ETV yesterday about the state of the ethanol industry now and the outlook for 2009.

Dinneen says that the future of the ethanol industry is “brighter today than ever before,” citing the Renewable Fuels Standard (passed in late 2007) as a growth engine for the industry.

However, he also points out that the ethanol industry is not immune to the challenges that every market seems to be facing these days when it comes to financing and expansion. He predicts that there will be more consolidation in the months to come but that 2009 looks to be a good year for the industry, especially with President-Elect Obama’s pro-ethanol stance.

Take a look at the video here.