Ethanol Market Demand

The first product from our algae-based technology platform is ethanol as a transportation fuel.

The United States produced about 13 billion gallons of fuel ethanol, mostly from corn, in 2010. Brazil, the world's second largest producer of ethanol, produced approximately 6.9 billion gallons of ethanol from sugar cane. According to the Renewable Fuels Association (RFA), the U.S. production of fuel grade ethanol will increase to approximately 13.5 billion gallons by the end of 2011. The United States is approaching the limit of arable land for corn ethanol production.

In 2005, the United States adopted a Renewable Fuels Standard (RFS), which mandated the use of renewable fuels for blending in gasoline. The RFS was amended in 2007 (RFS2) and the renewable biofuel mandate was extended to 36 billion gallons by 2022. RFS2 specifically mandates the use of 15 billion gallons of corn ethanol and 21 billion gallons of advanced biofuels, including cellulosic ethanol, by 2022. To meet the RFS2 mandate, advanced methods to produce ethanol need to be developed to fill the 21 billion gallon requirement for advanced biofuel.

Algenol’s low-cost, low-carbon-footprint modular and scalable DIRECT TO ETHANOL^® process is the best way to fill this market requirement.

Algenol’s goal is 20 billion gallons per year of low cost ethanol by 2030.