USDA Report Projects 88 Million Gallons of Biofuel Capacity in 2010
Posted by admin on 5/18/10 • Categorized as Biofuels,End Markets,North America,World News
USDA’s Economic Research Service has released a report assessing the short-term outlook for production of next-generation biofuels and the near-term challenges facing the sector.
According to the report, next-generation U.S. biofuel capacity should reach about 88 million gallons in 2010, thanks in large measure to one plant becoming commercially operational in 2010, using noncellulosic animal fat to product green diesel. U.S. production capacity for cellulosic biofuels is estimated to be 10 million gallons for 2010, much less than the 100 million gallons originally mandated by the 2007 Energy Independence and Security Act (EISA).
The future of next-generation biofuels will hinge on success in addressing the following challenges:
- Reducing high production and capital costs
- Securing financial support during precommercial development
- Establishing feedstock supply arrangements
- Overcoming blend wall constraints
More on the next generation biofuels report.
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