Boundless: Exporting to More Places

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December 14, 2023

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by Katie Schroeder (Ethanol Producer Magazine) ... Ed Hubbard, general counsel and vice president of government affairs at the Renewable Fuels Association, says a growing number of countries around the world are not only committed to using more ethanol but highly intent on seeing it through in the near term. In September alone, the U.S. exported ethanol to more than 40 countries, according to the USDA Foreign Agricultural Service—and buyers in as many as 80 nations take in U.S. ethanol every year. The demand for ethanol, Hubbard says, is being “calcified by unstable geopolitical situations,” but more broadly driven by carbon reduction goals. He says the current strength of global ethanol markets points to a growing international resolve to break away from problematic energy sources amid the dual challenges of conflict and climate change, with the lion’s share of growth being driven by the latter.

Diverse, Dependable Markets
America’s closest ally—both geographically and politically—remains its top ethanol buyer. While other large markets tend to be hot and cold, Canada is reliable, holding steady with high volume and pursuing growth through increased blending targets. “The EU market kind of died down after a countervailing duty action, [and] Brazil is challenging, but our most consistent market has been Canada. Not only has it been consistent and [high volume] for years, but it’s also a growth market,” Hubbard says, explaining that Canada’s latest Clean Fuel Regulations are expected to put the nation on a path to E20 use in the next decade.

Likewise, the U.K. has been increasing its ethanol imports and making commitments to higher blending. In fact, the U.K. was second only to Canada in purchases of U.S. ethanol in September, taking in 13.65 million gallons in that 30-day period.

Conversely, Hubbard says, the once reliable ethanol market of the European Union remains fickle.

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Stable international trade relations have been key to the growth of ethanol exports to newer markets like Southeast Asia, Africa and Central America, Hubbard explains. “I don’t think these markets are just organically growing,” he says. “We’ve been [intentionally] trying to open them. We’ve spent a lot of time, as an industry, on education and international market outreach. And we’re seeing the results of that work—very positive results.”

Some of the most promising growth markets for U.S. ethanol include Japan, Vietnam and South Korea.

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As they have worked to update the numbers to better reflect modern farm practices, U.S. ethanol’s market share in Japan has increased from less than 40 percent to over 60 percent. Japan uses ETBE, an ethanol-based ether, as a gasoline blending additive. Before the numbers were updated, Brazilian ethanol—with an ostensibly better CI—was actually being sent to the U.S. to be formulated into ETBE destined for Japan. Today, U.S. ethanol is being used. “Now it’s a lot more efficient,” Hubbard says, adding that the next step is to encourage Japan to start practicing direct blending, as much of the world does.

Vietnam is another exciting market with an E5 blend in place.

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Two African countries taking notable steps toward ethanol blending are Ghana and Nigeria. READ MORE

Related articles

Time For A European Shift On Renewable Ethanol (ePURE/Ethanol Producer Magazine)
US groups eye growing bioethanol market in Japan (Biofuels International)

Excerpt from Biofuels International: The Japanese government has recently become more interested in using bioethanol for the production of sustainable fuel for air travel.

In response, the US Grains Council (USGC) and the US Department of Agriculture (USDA) hosted a conference, US Ethanol for Sustainable Aviation Fuel (SAF) and Beyond to build on the burgeoning biofuel consumption in the country.
USGC President and CEO Ryan LeGrand travelled to Tokyo for the event that attracted more than 90 key Japanese government officials, academic researchers, nonprofit groups and other influential industry leaders.

“I feel it’s important for me to speak here and continue to show support for the growing demand for SAF in Japan,” LeGrand said.

“We can all see the incredible decarbonisation effects of blending bioethanol into gasoline for road vehicles, and reducing the emissions of air travel is the next step we can take in creating a healthier and more sustainable future for transit.”

Before the conference, LeGrand and USGC Japan director Tommy Hamamoto took part in a series of meetings with officials and policymakers, including sessions with representatives from the Japanese Ministry of Economy, Trade and Industry (METI) and USDA Foreign Agricultural Service (FAS) specialists working at the US Embassy in Tokyo.

LeGrand delivered the opening remarks for the conference to present the potential of US corn bioethanol for SAF production, along with Raymond Greene, deputy chief of mission at the US Embassy in Tokyo; Akira Amari, member of the Japanese House of Representatives; and Johan Ullman, managing director at Marquis Energy Global.

“All of the event participants and industry leaders we met showed tremendous interest in SAF and the overall sustainability efforts of the US bioethanol value chain,” Hamamoto said. “US corn production is stronger than ever and is ready to support Japan and other countries in their transition to more environmentally-friendly transit options.” READ MORE

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