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U.S. Department of Energy
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The fuel ethanol industry in the U.S. witnessed a significant inflection point in the 2006-2007 timeframe where capacity was added quickly and the industry out-paced policy measures by over 35% This growth was the result of capital investment decisions made beginning mid-2004 due to the anticipated 2005 Energy Bill and already rising gasoline prices. Transportation capacity andterminal throughput for ethanol were increased over the same period, but struggled to keep up with the new production. This first annual "Year in Review", written for the U.S. Department of Energy’s Office of the Biomass Program examines the issues facing the ethanol industry as it strives to move to and through the coming inflection point. With a focus on enabling the private sector and financial community, it also serves to highlight areas for system improvements where legislation and government policies and programs can assist existing players and new entrants.