EIA: Ethanol Production Hit Record

OAKHURST, N.J. (DTN) -- Domestic ethanol production in June averaged 949,000 bpd, the highest monthly level of the year, the Energy Information Administration reported Tuesday. Production for the period profiled also included the highest weekly level ever recorded at 972,000 bpd for the week-ended June 13.

The agency revised higher its ethanol production forecast for this year to 932,000 bpd from 920,000 bpd in June's STEO, while also increasing its forecast for 2015 to 940,000 bpd from 935,000 bpd a month ago.

Biodiesel production, which averaged 89,000 bpd in 2013, is forecast to average 80,000 bpd this year, 1,000 bpd below month prior estimates. In 2015, biodiesel production is expected to average 84,000 bpd, unchanged from June's forecast.

EIA estimates carbon dioxide emissions from fossil fuels increased 2.2% in 2013 from the previous year and would rise 1.7% this year followed by a decline of 0.9% in 2015. The increase in emissions in 2013 and 2014 reflects growth in coal consumption for electric power generation. Coal emissions are projected to decline by 2.6% in 2015.

On June 4, the 24th allowance auction was held for Regional Greenhouse Gas Initiative. RGGI involves nine Northeastern and Mid-Atlantic states—Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont. Each allowance permits one short ton of C02 emissions. The clearing price was $5.02 per short ton and more than 18 million allowances were sold to 43 bidders. The average clearing prices in prior-year auctions were $1.93 per short ton in 2012 and $2.92 per short ton in 2013.

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