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Drought has no impact on fuel costs

by 5m Editor
10 August 2007, at 11:16am

US - Is alternative fuel production being impacted by this summer's drought? Since ethanol is being made with corn and biodiesel with soybeans, growing season droughts may have the potential to affect production and costs for the fuels.

Gilbert Holt, a supervisor at the Lewes power plant and water plant, tracks the area's rainfall and said he recorded just under 10 inches total for June, July and August.

But two Delmarva farmers, well-versed in biofuels, say that while the lack of rainfall in the region will affect some crop yields, it will not affect national biofuel production nor the fuels' prices.

According to Robert Hutchison of Hutchison Brothers, producers of grain and livestock feed in Cordova, Md., ethanol production is not taking a hit due to the drought. He said that the national markets are reporting a record high corn crop this year and that prices are actually dropping.

According to Hutchison, there is no ethanol production in the drought-stricken regions of Maryland and Delaware. He said that most ethanol is produced from Midwest crops -- which is not currently experiencing a drought.

Hutchison said that the smaller corn yields from Maryland and Delaware could indirectly affect national ethanol production, but not by very much.

"But we're such a drop in the bucket," Hutchison said of Maryland and Delaware corn production for ethanol.

According to him, the impact for this area will be more on the poultry industry.

Source: The Daily Times

5m Editor