The ethanol industry has increased production capacity by 20% this year to about 6.48 billion gallons per year, according to the Renewable Fuels Association.

By the end of 2007, capacity is expected to hit 8 billion gallons per year.

In the U.S. there are currently 124 ethanol distilleries, but 76 plants are under construction and 7 plants are undergoing expansion. According to the RFA, once all of the new plant construction and expansion is on line, total ethanol production capacity will be nearly 12.9 billion gallons per year.