The ethanol industry, once one of the fastest growing industries in the world, has been subjected to severe pressure from high corn prices, negative PR campaigns, product price volatility and the economic meltdown. The industry focus has shifted from rapid expansion to cost competitiveness and profit maximization. Although the business environment is expected to improve over the next 12 months, existing ethanol plants must determine how to optimize their ethanol plants now to achieve long-term sustainability. Substantial growth is tempered by economic realities:
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Ethanol will not go away. Distressed ethanol plants are being snapped up by oil companies and other investors with a long-term outlook and an understanding that Renewable Energy has become part of the fabric of our energy strategy. The Renewable Fuel Standard requires an increasing amount of renewable fuel to be blended in with fossil fuels. Ultimately, we must ascertain how to get from just over 10 billion gallons to 36 billion gallons.
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Improved efficiencies at existing biorefineries, new process technologies, commercialization of cellulosic conversion technology, and additional industry consolidation will provide a platform from which this industry can launch and expand into a new, sustainable and renewably fueled era in American history. Product diversity will be the key to managing risk and feedstock volatility:
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Innovative value-added technologies will most certainly be required to construct future ethanol projects and make existing plants competitive. Corn Fractionation, Renewable Energy Centers and the development of cellulosic ethanol feedstocks are some examples of the technology shifts that will be occurring in the ethanol industry to reach the 36 billion gallon goal set out by Congress.
Frazier, Barnes & Associates has always been on the forefront of innovative technologies and ethanol plant optimization. Our economic and operational models have proven to be invaluable resources for the ethanol industry.
Contact FBA today to determine how your ethanol plant can become a sustainable entity with a greatly reduced carbon footprint. It is no longer an option, but a necessity.
7777 Walnut Grove Rd • Suite A5, Box 24 • Memphis, TN 38120 • Phone: 901-725-7258 • Toll Free: 1-877-598-7525 • Fax: 1-901-725-7245