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The Demand for Ethanol


A strong market is continuing to fuel demand for ethanol, a renewable fuel made of plant material that is added to gasoline to oxygenate it, reducing air pollution. In the U.S., more than 98 percent of gasoline contains ethanol, and almost all of that is derived from the starch in corn.

The amount of corn grown for ethanol has increased steadily from .28 million bushels in 1987 to 5.28 million bushels in 2016, according to preliminary 2016 statistics from the U.S. Department of Agriculture’s Economic Research Service. The Renewable Fuels Association says the production of 15.8 billion gallons of ethanol in 2017 directly employed nearly 72,000 U.S. workers, creating $24 billion in household income.

While corn production jumped significantly between 2001 and 2010, when nearly all gasoline transitioned to 10 percent ethanol, almost any plant-based material can be used to make ethanol, and new possibilities are being explored. One example: The North Dakota Industrial Commission just approved a Renewable Energy Program Grant of $83,810 to Midwest AgEnergy Group to study the possibility of using North Dakota barley to make a protein concentrate for use in aquaculture and a low-carbon advanced ethanol. It would be the first ethanol in the state produced from feedstock other than corn. If all goes well, construction could begin in 2019.

American Diversified Energy (ADE) gives you access to over 150 experts, who can provide assistance on everything from due diligence to advancing new technologies related to all aspects of ethanol production and technology commercialization.

ADE also can provide assistance with feasibility studies, annual reports, securing grants and guaranteed loans, responses to requests for proposals, creation and production of multiple types of business publications, business plans, financial models, financial presentations, business case and market analyses, technology development, engineering assistance, project management, government relations, and lobbying, and more. Feel free to contact or call us at 202-750-0007 for more information.

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