The Renewable Fuels Association and the Energy Information Administration announced today that production of ethanol in 2006 reached 4.86 billion gallons… up 24.3% percent from 2005. Likewise, demand for ethanol is up by a third during the same time period.

From an RFA news release:

“America’s ethanol industry is clearly stepping up to fulfill increased ethanol demand and help address the need to reduce America’s dependence on foreign oil,” said RFA President Bob Dinneen. “The nearly 25 percent increase in ethanol production over last year is consistent with the type of growth our industry has experienced in recent years and this growth will continue. The bottom line is America’s ethanol industry is up to the challenges that lie before us.”

The RFA says there are 114 ethanol biorefineries across the country that have the capacity to produce more than 5.6 billion gallons annually. Seventy-eight more ethanol refineries are under construction and seven expansion projects are underway that would give the U.S. a combined annual capacity of more than 6 billion gallons.