According to the Renewable Fuels Association, ethanol demand and production has increased as the U.S. summer driving season has progressed. Citing Energy Information Administration statistics, RFA officials point out that U.S. ethanol demand has climbed to about 562.6 million gallons a day. That's up 22 percent from May 2006. Ethanol's daily production quota has increased to 528.1 million gallons on average, or 38 percent. Ethanol stocks in May amounted to 21 days of reserve fuel, according to RFA.

At the moment, U.S. 124 ethanol refineries have the capacity to produce more than 6.4 billion gallons annually. Seven more refineries are being expanded and upgraded, and 75 more plants are under construction, reports RFA.
"The United States will double its ethanol production capacity by the end of 2007 from where it was at the beginning of the year," notes Glenn Grimes, University of Missouri agricultural economist.

By 2009, the U.S. industry will have more than 6.3 billion gallons of new ethanol production capacity.

Source:, Renewable Fuels Association