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August 24, 2006
BIOFUELS
Ethanol Industry Boosts Capacity
Companies plan to build new facilities by 2008 to meet growing demand for gasoline additive
Glenn Hess
The ethanol industry continued its rapid expansion last week as BioEnergy International and Alternative Energy Sources (AES) announced plans to construct new facilities that will add more than 200 million gal of annual capacity.
BioEnergy International and Lukoil Americas plan to build a 108 million-gal-per-year plant in Clearfield County, Pa. The companies are evaluating several potential sites, with commercial start-up tentatively scheduled for late 2008.
Norwell, Mass.-based BioEnergy says the facility will initially use corn as the feedstock. Over time, the corn will be replaced by organic wastes. East Meadow, N.Y.-based Lukoil Americas' downstream subsidiary has agreed to purchase all of the plant's output and will market gasoline blended with ethanol throughout its network that spans 13 states in the Northeast and mid-Atlantic regions.
On Aug. 17, Pennsylvania Gov. Edward G. Rendell presented BioEnergy with $17.4 million of state investments to support the project and a pilot plant to assist in the development and commercialization of BioEnergy's technology.
"The state's support represents a fundamental building block that will allow us to bring a major economic contribution to the region," says Stephen J. Gatto, chairman and CEO of BioEnergy. "Long-term access to biomass materials was a key factor in selecting Clearfield County for our second project."
BioEnergy is also building a 108 million-gal-per-year ethanol plant in Lake Providence, La. That project is currently in the site-preparation phase. Construction is expected to start in the fourth quarter of 2006.
Company officials say the two facilities, over time, will utilize its proprietary technologies to produce high-value specialty chemicals and renewable fuels.
Meanwhile, Kansas City, Mo.-based Alternative Energy Sources plans to build a 110 million-gal-per-year ethanol plant in Kankakee, Ill., adjacent to the Canadian National/Illinois Central main railroad line, which links the Gulf states with Canada and intersects with rail lines crossing the Midwest.
"With both rail and truck shipping capabilities readily available, we will be able to serve national markets as well as neighboring communities in northeastern Illinois and northwestern Indiana," says AES President and CEO Mark Beemer. The plant is scheduled to be in operation by fall 2008.
On Aug. 15, AES announced plans to build its first ethanol plant, also a 110 million-gal facility, in Boone County, Iowa. The company also plans to construct additional facilities in the Midwest as well as the first cellulosic ethanol facility in the eastern U.S.
Beemer, a former vice president of Archer Daniels Midland's Grain Division, the nation's largest ethanol producer, notes that U.S. automakers are producing more vehicles that run on a fuel mix of 85% ethanol and 15% gasoline, known as "E85," and that gas stations are continually gaining customers at their E85 pumps.
According to the Renewable Fuels Association, 101 ethanol plants currently operate in the U.S., with a combined annual production capacity of more than 4.8 billion gal. In addition, 39 new facilities and seven expansion projects now under construction will increase the industry’s capacity by 2.5 billion gal when complete.
- Chemical & Engineering News
- ISSN 0009-2347
- Copyright © 2006 American Chemical Society
