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Lending Perspective at the NEC

Posted: March 2, 2009 at 09:17 AM CST

It may seem as if I’ve spent quite a bit of time plugging the National Ethanol Conference on this blog recently. Indeed, that is the case. However, it is with good reason. The annual policy and marketing event is a great industry kick-off event for the year. It provides insights from the past year and sets up the challenges and opportunities for the next 12 months. Nowhere is that summed up better than Renewable Fuels Association President Bob Dinneen’s State of the Industry Address: http://www.ethanolrfa.org/objects/documents//2009_state_of_the_industry.pdf

In it, Dinneen doesn’t shy away from the economic troubles that have plagued the industry. However, he also points out that the industry is doing comparatively well against other industries. He points out that in 2008 the industry added 240,000 jobs. It also continues to grow as an additional 21 plants are under construction. Even with recent plant closures, “the U.S. ethanol industry is still operating at about 85 percent of capacity, while the manufacturing sector as a whole has slowed to about 70 percent of capacity utilization,” Dinneen said.

He also touts the significant milestone of cellulosic ethanol production, which is occurring today. It may be a little longer until full-scale commercial-scale production begins, but it appears the days of waiting “only five more years” are over.

Dinneen also discusses some crucial agenda items, such as working with the U.S. EPA to allow the use of higher level ethanol blends, getting key officials to recognize the low carbon footprint of ethanol production and use, continuing the debate on land use change impacts, and accelerating the commercialization of cellulosic ethanol.

The RFA has more information from the event at its Web site: http://www.ethanolrfa.org/. This includes information on the land use effects of ethanol production, the industry’s contribution to the U.S. economy and an update on 2008 distillers grains exports.

-Dave Nilles