Vilsack: Helping Ethanol Industry a priority
Jan 29, 2009 9:00 AM, By Richard Brock
Helping the U.S. ethanol industry
survive current hard times is a priority, Agriculture Secretary Tom Vilsack
said Monday, adding that he will be looking at a variety of different ways to
do that.
One specific way to help out is
through offering government assistance to make sure that refineries are as
efficient as they can be, he said.
But there may also be other ways
to help a U.S. ethanol industry that has been plagued with bankruptcies and
production halts from companies that suffered from sharply fluctuating corn and
gasoline prices in 2008, Vilsack told Dow Jones Newswires.
"I haven't had a chance to
meet with staff about a whole series of other options," he said. "I
just want to make sure I know all the implications and all of the options that
are available."
Vilsack also laid out a
three-pronged approach to making sure the corn-based ethanol industry is able
to continue to increase production and meet rising targets set by Congress.
Fundamentally, he said, it's about
improving "efficiencies of existing operations," he told Dow Jones
Newswires. "It's about looking at ways in which markets can be expanded,
and it's also how you might be able to provide some bridge from hard times to
better times. Those are the three strategies."
Congress passed a renewable fuels
standard in December 2007 that mandated 9 billion gallons of ethanol be blended
into gasoline in 2008. This year, that climbs to 10.5 billion gallons, and it
increases yearly until it reaches 15 billion gallons in 2015.
Nearly all commercially produced
ethanol in the U.S. is made from corn, but within just a few years some of that
fuel is expected to be produced from second-generation, or cellulose,
feedstocks like wood chips and other agricultural waste products.
Vilsack, in a Monday teleconference with reporters, said: "We need to make sure that the [corn-based ethanol] industry has the necessary support to survive the recent downturn, while at the same time promoting policies that will speed up the development of second- and third-generation feedstocks for those biofuels that have the potential to significantly improve America's energy security and independence."
Editor’s note: Richard Brock, Corn & Soybean Digest's marketing editor, is president of Brock Associates, a farm market advisory firm, and publisher of The Brock Report.
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