Logistical Issues Hit Ethanol Output

OAKHURST, N.J. (DTN) -- The Energy Information Administration on Tuesday, April 8, said logistical constraints, primarily railroad delays resulting from extreme winter temperatures in the Midwest, led to a decline in ethanol production.

EIA said production averaged about 900,000 barrels per day (bpd) in January and February before falling to 890,000 bpd in March.

P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]

"These logistical problems led to sharp ethanol prices increases across the United States in March, but especially in PADD I (East Coast)," said EIA. "These constraints are expected to be short-lived as warmer temperatures arrive and ethanol production rebounds to a forecast average of 908,000 bpd during 2014."

Biodiesel production averaged about 87,000 bpd in 2013 and is forecast to average about 75,000 bpd in 2014 and 77,000 bpd 2015.

The agency said biodiesel production, which averaged 64,000 bpd or 1.0 billion gallons a year in 2012, rose to 104,000 bpd or 135 million gallons in December 2013, 7 million gallons higher than November 2013. A biodiesel production tax credit expired at the end of 2013.

Meantime, EIA estimates that carbon dioxide emissions from fossil fuels increased 2.1% in 2013 from the previous year and would rise 1.9% this year followed possibly by a small decline of 0.8% in 2015. The increase in emissions in 2013 and 2014 reflects growth in coal consumption because of its higher use in electric power generation. Coal emissions are projected to decline by 2.5% in 2015 with increasing coal plant retirements.

(BM/AG)

P[] D[728x170] M[320x75] OOP[F] ADUNIT[] T[]
P[L2] D[728x90] M[320x50] OOP[F] ADUNIT[] T[]
P[R1] D[300x250] M[300x250] OOP[F] ADUNIT[] T[]
P[R2] D[300x250] M[320x50] OOP[F] ADUNIT[] T[]
DIM[1x3] LBL[article-box] SEL[] IDX[] TMPL[standalone] T[]
P[R3] D[300x250] M[0x0] OOP[F] ADUNIT[] T[]