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Ethanol proponents will look back on 2006 as a year of landmark policy implementation and dramatic growth. From the president’s priceless plug for cellulosic ethanol to a flurry of state and federal legislative efforts, the biofuel’s political presence did not wane after the accomplishments of 2005.

With the implementation of the Energy Policy Act of 2005 and the simultaneous phaseout of MTBE in 2006, the U.S. ethanol industry witnessed another unprecedented period of growth that is carrying into 2007.

In 2006, the ethanol pendulum didn’t just swing back and forth—it unhinged from its fulcrum altogether. Much of the past year’s activities focused on less costly, more efficient methods of making ethanol.

Alternatives to natural gas as a source for process heat and steam were especially hot topics this year despite retreating natural gas prices. Here’s a look at what went down energy-wise in the ethanol industry in 2006.

After the president’s powerful plug for cellulosic ethanol in early 2006, “switchgrass” became a more common word. Funding for scientific and technological efforts to produce ethanol from biomass on a commercial scale reached new heights, and although no actual concrete was poured to construct cellulosic ethanol plants, the foundation for the ethanol industry’s next era began to cure.

U.S. corn growers produced the third-largest crop on record in 2006 despite drought conditions in some major production areas. When not focused on production, growers and industry leaders turned their attention to rebuilding the lock system on the Mississippi River and tracking the Doha round of the World Trade Organization discussions.

Aiming to keep shipments of increased supplies fluid, rail companies were shelling out the dough this year to curb future delays on their heavily traveled lines.

Propelled by federal policy and high crude oil prices, the demand for ethanol ballooned in 2006. The ensuing race to satiate the nation’s hunger for ethanol—and to get in on the profits—led some ethanol producers to pack their bags and head for Wall Street.

Newcomers to the international ethanol community made significant advances following in the footsteps of the world’s renewable fuels leaders—the United States, Brazil and the European Union (EU)—in what some in the industry are calling a turning point year for ethanol. The emerging producers have the benefit of learning from industry leaders who have weathered the trials and tribulations of building an industry from the ground up.

Attendance at nearly all ethanol conferences was record-breaking in 2006, mirroring the rapid growth of the biofuels industry. Likewise, the sheer number of ethanol conferences was mind-boggling. In retrospect, EPM looked at the biggest conferences, most important issues and hottest trends to hit ethanol events in 2006.

When should you hedge?

USDA production numbers drop, increasing market volatility

Grain harvest lows come at unexpected time, keeping market tight

Autumn ethanol finds support