Last week, a U.S. Grains Council (USGC) delegation traveled to Guatemala to participate in a U.S. Department of Agriculture (USDA) Agricultural Trade Mission (ATM) with the goal of engaging key stakeholders to advance the implementation of an ethanol blending program currently scheduled to begin in January.
The Council’s group included USGC Manager of Global Ethanol Programs Joana Hassan; USGC Regional Ethanol Consultant Federico Salcedo; Eco-Energy Director of Sales and Marketing-International and USGC Ethanol Advisory Team Lead Hagan Rose; and ZFS Inc. Commercial & Supply Chain Director Jose Jimenez.
During the mission, the team met with both government and private sector representatives, including officials from Guatemala’s Ministry of Mines and Energy (MEM), the Alcohol Producers Association (APAG), the Renewable Fuels Association of Guatemala (ACR), the Association of Hydrocarbon Importing Companies (GEIH) and the Fuel Transportation and Gasoline Retailers Associations. The Council was also engaged in USDA ATM activities led by USDA Acting Associate Administrator Mark Slupek.
“Guatemala, along with other Central American countries such as Costa Rica and Panama, is on track to implement an ethanol-gasoline blending program,” Salcedo said. “The Council is providing technical support and sharing case studies highlighting ethanol’s benefits, including diversifying energy sources and reducing emissions and we will continue supporting the development of ethanol markets in Guatemala and across Central America.”
The meetings provided insights into local market dynamics and reinforced support for the ethanol-blending program, helping set the stage for a successful implementation.
As Central America’s largest economy and population center, Guatemala is projected for continued economic growth and in 2023 the country imported more than $1.7 billion in U.S. agricultural products, making it the top market in the region.
Guatemala consumes nearly 850 million gallons of gasoline annually and plans to implement an E10 ethanol blend, incorporating both advanced and conventional ethanol. The country’s ethanol industry currently produces approximately 65 million gallons annually, with more than 85% of that production exported primarily to Europe.
“Guatemala is open for business, it’s starting its blending program in January and the country is open to the U.S. ethanol industry helping them supply the balance of what they can’t produce domestically,” Jimenez said. “The only hurdle for the U.S. industry is to meet their specifications and low carbon requirements.”
Learn more about the Council’s work in Guatemala here.
About The U.S. Grains Council
The U.S. Grains Council develops export markets for U.S. barley, corn, sorghum and related products including distiller’s dried grains with solubles (DDGS) and ethanol. With full-time presence in 28 locations, the Council operates programs in more than 50 countries and the European Union. The Council believes exports are vital to global economic development and to U.S. agriculture’s profitability. Detailed information about the Council and its programs is online at www.grains.org.