U.S. Grains Council (USGC) staff and consultants participated in this month’s annual meetings of Growth Energy and the Renewable Fuels Association (RFA), highlighting both the overseas market potential for U.S.-produced ethanol and the partnership between the three organizations helping to build that demand.
A team of U.S. Grains Council (USGC) staff and two ethanol industry representatives traveled to Japan, Korea and Taiwan last month to review the ethanol markets in these countries and evaluate potential for ongoing U.S. ethanol export promotion programs in the region.
The team visited quasi-governmental organizations, government agencies, industry experts and representatives to both network and discuss possible in-roads for U.S. ethanol.
This marketing year’s U.S. ethanol exports are expected to be the second largest on record as ethanol export promotion efforts ramp up by the U.S. Grains Council (USGC) and its partners Growth Energy, the Renewable Fuels Association and USDA’s Foreign Agricultural Service.
“Efforts to promote increased exports of U.S. ethanol are showing progress, with global ethanol exports during the first 10 months of the current marketing year posting an 11 percent gain over last year’s numbers,” said USGC Chief Economist Mike Dwyer.
A U.S. Grains Council (USGC) mission including U.S. environmental and public health specialists traveled to China last week to discuss how air and water quality in that country could be improved through the use of ethanol in the country’s fuel.
”China already has a 10 percent mandatory blend rate for gasoline in specified markets,” said USGC Manager of Ethanol Export Promotion Programs Ashley Kongs. “But there are many large cities and regions seeking to improve air and ground-water quality that are not yet using E10 fuel.”
The U.S. Grains Council (USGC) is working with partners including the U.S. Department of Agriculture’s (USDA’s) Foreign Agricultural Service (FAS), the Renewable Fuels Association (RFA) and Growth Energy to develop and execute global market development programs for U.S. ethanol in select markets including Canada, China, Colombia, the European Union, Japan, Mexico and the Philippines.
Last week, the U.S. Grains Council (USGC), the Renewable Fuels Association (RFA), Growth Energy and U.S. Department of Agriculture’s (USDA’s) Foreign Ag Service (FAS) teamed up to lead a mission of U.S. ethanol industry representatives to Mexico to explore potential in that market. One mission member, Greg Krissek, CEO of Kansas Corn, reflected on his recent mission in this video.
This week’s U.S. Grains Council’s (USGC’s) Chart of Note illustrates the wide range of markets for U.S. ethanol exports in 2014. This is a change from just four years ago, when more than 80 percent of U.S. ethanol was exported to Brazil, Canada and the European Union.
Representatives from the U.S. Grains Council (USGC), Renewable Fuels Association (RFA) and Growth Energy traveled this week to Japan and Korea to explore the potential for U.S. ethanol in those markets.
The trip is part of a wider look at potential overseas markets for this renewable fuel, which is in increased demand due to mandates for cleaner fuel and its overall affordability.
This Chart of Note shows the theoretical volume of ethanol demand by non-U.S. markets with existing biofuels mandates. If countries enforced existing biofuels mandates using ethanol, their gasoline use in 2012 would suggest that the top 10 ethanol consumers would require 3.5 billion gallons of the renewable fuel. The next 10 would add another 393 million gallons of demand.