July 2000

Trends and Resources

HP Impact: HPImpact: Ethanol producers gain opportunities

U.S. demand for gasoline and other fuel additives is forecast to fall to 35 billion pounds: a value of $6 billion. Declines will result primarily from California's executive order banning the use of m..

Weirauch, Wendy, Hydrocarbon Processing Staff

U.S. demand for gasoline and other fuel additives is forecast to fall to 35 billion pounds: a value of $6 billion. Declines will result primarily from California's executive order banning the use of methyl tertiary butyl ether (MTBE) in gasoline sold in the state. This recent forecast is from market researchers at The Freedonia Group, Cleveland, Ohio. The losses in the MTBE sector will provide opportunities for ethanol producers. Ethanol is seen as the "most likely replacement" for MTBE in reformulated gasoline. Thus, it is expected to be the most promising fuel additive; growth is forecast to reach 10%/yr to $2.4 billion in 2004. Other states are expected to follow California's lead, an

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