Red Trail Energy explores new territory

Source: Energy Digital

Date :07/12/2007 06:33:57

Plant Manager Edward Thomas explains how the company’s Ethanol Plant turns corn into alternative fuel, exploiting rising demand across the US.

Written by Hailey McKeefry and produced by Nick Ledue.

Red Trail Energy is blazing a new trail in the North Dakota energy market - just as explorers Lewis and Clark explored the old Red Trail that the company is named after and located near. The plant was the first of its kind in North Dakota when it opened its doors last January and, now at full capacity, it supplies 50 million gallons of ethanol annually.

A Growing Concern

Both in North Dakota and throughout the United States, ethanol production capacity is skyrocketing. Just a month after Red Trail Energy began operations, a second plant called Blue Flint was also launched.

Demand, however, is growing just as fast. “You will see more demand for ethanol as more states blend in more ethanol in five or ten percent blends into gasoline,” predicts Edward Thomas, plant manager at Red Trail Energy. “If the new and improved Renewal Fuel Standard (RFS) passes, there will be demand for 15 billion gallons of ethanol by 2015 made form corn.”

Between 2001 and 2007, U.S. fuel ethanol production capacity grew 220 percent from 1.9 billion to 6.1 billion gallons, according to Ethanol Statistics, a market research firm in the Netherlands. “Much of this growth was made possible by government regulation and legislation that actively supports the ethanol industry by creating mandatory ethanol demand and financially attractive investment opportunities in ethanol production capacity,” according to a report which the company released in August…

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