The United Kingdom (UK) has emerged as a significant export market for U.S. ethanol. During marketing year (MY) 2023/2024, export volumes of U.S. ethanol destined for the U.K. reached 227 million gallons, surpassing the European Union by 86 million gallons. Although the current MY 24/25 only began in September, ethanol exports of U.S. origin to the U.K. are already up 29 percent year-on-year, placing it as the third largest export destination for U.S. ethanol.

The U.S. Grains Council (USGC) plans to continue encouraging the British government to build on its efforts to increase the use of biofuels to achieve an E10 average blend rate nationwide, removing the current duty on U.S. ethanol and allowing for the inclusion of first-generation biofuels in the context of its SAF mandate.

The country’s burgeoning demand for U.S. ethanol in recent years is largely ascribed to the country’s embrace of ethanol as an effective tool to aid in the decarbonization of its transportation sector. In the U.K., the increased use of ethanol and other renewable fuels is mandated by the Renewable Transport Fuel Obligation (RTFO).

In July 2021, the U.K. Department for Transport (DfT) published its transport decarbonization plan, which seeks to decarbonize all modes of domestic transport by 2050. This initiative preceded the introduction of the country’s mandate that gasoline must be blended with 10 percent ethanol (E10) in September of that year, contributing to an increase in the use of renewable fuel in the U.K.. Building on this momentum and successful rollout in England, Northern Ireland saw E10 implementation in November 2022.

The latest installment in the U.K.’s energy plan relates to sustainable aviation fuel (SAF). Specifically, the SAF Mandate serves as the U.K.’s key policy to decarbonize aviation fuel by encouraging the supply of SAF. The mandate came into effect on Jan. 1, 2025, starting at a modest two percent of total U.K. jet fuel demand, but ramping up on a linear basis to 10 percent in 2030, before reaching 22 percent in 2040. From 2040, the obligation will remain at 22 percent until there is greater certainty regarding SAF supply. The policy also features a sub-mandate on power-to-liquid (PtL) fuels, beginning in 2028.