In the latest Long Term Energy Outlook report issued by the Energy Information Administration, higher fossil fuel prices and public policy will generate a further shift toward alternative energy in the coming years.
According to an AP story, U.S. ethanol use is expected to grow to 11.2 billion gallons in 2012 from 4 billion gallons in 2005. By 2030, ethanol use could reach 14.6 billion gallons, or about 8 percent of the nation’s total gasoline consumption.
The projection for 2012 exceeds the 7.5 billion requirement of the Renewable Fuel Standard enacted as part of the Energy Policy Act of 2005, EIA noted.
The administration forecasts a 7 percent surge in the use of alternative sources for distillate fuels by 2030, mostly on greater consumption of biodiesel. Increased biodiesel usage is another component of the Energy Policy Act. Biodiesel use is expected to reach $400 million gallons by 2030, while the use of distillate from coal-to-liquid is projected to reach 5.7 billion gallons.
Read more from AP.