Pacific Ethanol is in the process of re-opening its ethanol production facility in Madera, California after being idle for five years. The plant, which has an annual capacity of 40 million gallons of ethanol should be operational by this spring. Pacific Ethanol’s other plants in Stockton, California, Burley, Idaho, and Boardman, Oregon have been operation at full capacity following the slowdown in ethanol production in 2012 which occurred because of drought and high corn prices. Most of the corn used by Pacific Ethanol’s facilities is shipped in by rail from the Midwest with less than 10% coming from local sources. Upon the implementation of the Renewable Fuel Standard, the industry expanded from 2-3 billion gallons per year to 14.5 billion gallons per year in the U.S. Paul Koehler, Pacific Ethanol’s Vice President states that supply and demand within the ethanol industry are more balanced now than in 2012 when there was an oversupply and high prices. Service stations are increasing available blends from 10%-15%, and by 2022, 36 billion gallons of U.S. fuel will be required to come from renewable sources.
To receive relevant news stories with summaries provided by GAI Research & Insight, subscribe to Global AgDevelopments, our free weekly enhanced eNews service