Latest Update: 01/25/2010
The INGAA Foundation, Inc. retained BBI International (BBI) to analyze the natural gas implications for future alternative fuels plants. This analysis looked at current and future biofuels plants and quantities and estimated thermal energy loads. Increased crop production to supply biofuels plants and the resulting increases in fertilizer requirements was reviewed. This study also evaluated alternative thermal energy sources for biofuels plants and energy efficiency gains that may reduce natural gas demand at biofuels plants. It also addressed the natural gas infrastructure necessary to meet future biofuels production requirements.
The alternative transportation fuels mandate in the Energy Policy Act of 2005 has created a greatly expanded market for biofuels such as ethanol. This market could grow even bigger if the Congress expands the scope of the mandate yet again, as now is proposed. Natural gas is one of the principal energy sources now used in producing ethanol. A number of interstate pipelines have expanded their facilities to connect with ethanol plants. Still, little has been done to analyze the dimensions of this market, the factors that will affect the ultimate size of the market, and the additional infrastructure that may be necessary to supply these new consumers of natural gas.
The INGAA Foundation, Inc. retained BBI International (BBI) to analyze the natural gas implications for future alternative fuels plants. This analysis looked at current and future biofuels plants and quantities and estimated thermal energy loads. Increased crop production to supply biofuels plants and the resulting increases in fertilizer requirements was reviewed. This study also evaluated alternative thermal energy sources for biofuels plants and energy efficiency gains that may reduce natural gas demand at biofuels plants. It also addressed the natural gas infrastructure necessary to meet future biofuels production requirements.
As discussed in the report, the impact of the RFS on natural gas demand is small. The total potential future demand increase in natural gas (81MMcfd) is expected to be relatively easy for the existing pipeline companies to supply.