US Ethanol consumption up 46% in past 12 months

US ethanol consumption has risen 46 percent in the past 12 months, according to Bloomberg. according to the news service the increased spread between gasoline and ethanol prices, now $1.02, is encouraging blenders to use more discretionary ethanol. October futures for ethanol were up 3.4 cents on September 27 after reaching a 26-month low of $1.515 per gallon.

Ethanol prices have declined more than 30% in 2007, owing to problems with demand stimulation and transportation infrastructure. Mandates in several states and federal mandates are expected to significantly increase ethanol consumption, narrowing the price spread between gasoline and ethanol.

Ethanol has a 30% lower energy density than gasoline but burns more efficiently in engines, resulting in an estimated 10-15% difference in mileage using E85 as opposed to pure gasoline, according to the National Ethanol Vehicle Coalition.

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