The Global Renewable Fuels Alliance (GRFA) has released its 2010 production forecast for ethanol and the future continues to look positive for growth in the industry. Here’s the good news from the Global Renewable Fuels Alliance,  this year ethanol, worldwide, will replace 370 million barrels of oil. According to the U.S. Energy Information Service, in 2008, the U.S. used 19.4 million barrels of petroleum daily. So, total world projected ethanol production in 2010 would replace about 20 days of petroleum use in the U.S. In the U.S., we will produce about 286 million barrels (42 gallons equals a barrel of oil) of ethanol in 2010. (U.S. daily production of petroleum, based on 2008 data, was 6.7 million barrel.) So total U.S. ethanol production will replace little more than 14 days of petroleum use. We are winning the battle in finding ways to replace petroleum, but we still have a long ways to go. Along with diversifying our energy mix in this country, the best way to use less petroleum is to design and build more efficient technology that uses less petroleum and all kinds of other energy. In 2008, EIA reported that U.S. oil consumption for transportation was 71 percent. In 2008, the EIA said U.S. gasoline use was 378 million gallons per day. If we developed a reasonable goal of reducing U.S. oil consumption for transportation to 50 percent through a combination of more fuel efficient technology and diversifying our energy mix, it would create a tremendous amount of wealth in our country. In 2008, EIA reported that the U.S. imported 1.8 million barrels of petroleum per day. Oil prices on Thursday were $81 per barrel. That $146 million we will spend importing oil on Thursday. That contributes to our negative balance of trade, which is in turn contributes negatively to this country’s GDP. The way back to economy recovery will be partly lowering the cost of doing business and one way to do it lowering energy costs. RKP

Total fuel ethanol production for 2009 was 73.9 billion litres according to data assembled by F.O. Licht.  The GRFA predicts global production will reach 85.9 billion litres in 2010 – growing by 16.2 per cent from 2009 production.  This year ethanol production will displace the need for 370 million equivalent barrels of oil globally.

The United States is still the world leader in ethanol manufacturing with more than 45 billion litres of ethanol production projected for this year.  At the other end of the spectrum, many developing countries including Nigeria and Malawi are turning to ethanol to boost their economies and secure their future energy needs.