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US cellulosic ethanol usage could fall significantly in 2012

June 22/2011

(ICIS) -- US cellulosic ethanol usage could fall significantly in 2012 based on a government proposal on Tuesday to cut the amount of that type of biofuel refiners would be required to blend in gasoline.


The mandate for US cellulosic ethanol consumption in 2012 would be cut to 3.45m-12.90m gal (13.06m-48.83m litres), from a previous 500m gal target, under a proposal by the Environmental Protection Agency (EPA).


The EPA cited a study of "market availability" as the reason behind the reduction, indicating that the US continues to a lack cellulosic ethanol production in the scale needed to meet its targets.


Despite the cut on the cellulosic side, the EPA proposed keeping the overall US target for renewable fuels usage in 2012 steady at 15.2bn gal, an increase of 9.4% from 13.9bn gal in 2011.


For 2013, the government proposed increasing the use of biomass-based diesel by 28% from 2012 to 1.28bn gal.


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