Economics

Alternative Transportation Fuels: Natural Gas Implications

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.