BioFuels Journal

The U.S. ethanol industry is expected to produce at least 9 billion gallons of ethanol this year and could be as high as 12 or 13 billion by the end of 2009.

That is approximately equal to 10% of the nation’s gasoline, meaning there is not much room for growth. This 10% cap, or “blend wall” could soon be increased through regulatory action according to Peter Rohde, editor of Kiplinger’s Biofuels Market Alert.

Highlights From the Broadcast

We use 140 billion gallons of gasoline a year. Down 10% so close to 125 billion. 10% of that would be closer to 12.5% gallons.

Three solutions to expand beyond the blend wall:

• Long-term, E-85 and blend pumps giving consumers a choice. That needs Flexible Fuel Vehicles. Six to seven million cars of 240 million that are FFV now. Only than 1,800 pumps nationwide.

• Allowing a higher blend, like E15 or E20 in existing legacy fleet. That would take years of thorough testing.

• An Executive Order for an EPA waiver of E12, E13 or as high as E15, provided for in the Clean Air Act, without lengthy testing if substantially similar to fuel being used today.

"It's a pretty fair bet that if the waiver is not done by Jan. 20, the incoming administration would do it."

Peter Rohde is the editor of Kiplinger's Biofuels Market Alert, a twice-monthly six-page newsletter published in Washington, DC.

He has been writing about alternative fuels, advanced vehicle technologies, and climate change for nearly a decade.

Previous speaking engagement topics include hydrogen, policies to address climate change, and energy independence.

For more information, call 202-887-6477.

Rohde holds a bachelor of science degree in economics from American University in Washington, DC.