Driving Opportunities to Expand the Market

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January 2, 2019

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by Emily Skor (Growth Energy/Ethanol Producer Magazine) … We expect a proposed rule in February, followed by a public hearing and comment process. President Donald Trump’s administration has clearly stated its intention to have a rule in place by June 1—when the 2019 summer driving season begins. Our opponents will try to derail the process and we will remain vigilant in preventing these attempts by providing EPA with the most sound legal and technical defense of the rulemaking.

While we fight for domestic market growth, there are also myriad opportunities abroad. We have identified six key markets—Brazil, Canada, China, India, Japan and Mexico—that can greatly improve ethanol’s market access and potentially secure billions of new gallons in biofuels demand. Already, the global blend rate outside of the U.S. and Brazil, the world’s top ethanol consumers, has reached 3.2 percent, and that number is expected to grow. Many of our key export markets have already begun implementing blending mandates for fuel ethanol. Growth Energy is working closely with our counterparts in those countries to ensure proper implementation and best practices, particularly in China, Canada and Brazil.

Additionally, a global E10 blend could bring a potential new 13 billion gallons of ethanol demand from other countries outside the U.S. and Brazil. However, reaching those heights will be difficult with trade barriers restricting market access to countries like China, so we’re extending ourselves as a resource to assist China with its 2020 E10 rollout plan.

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The reset provision was written into the Renewable Fuel Standard as a mechanism to reevaluate blending targets for starch ethanol, advanced biofuel and cellulosic ethanol relative to current blending levels, while considering a range of factors from expected rate of future production to environmental impact and cost to consumers, among others. The RFS is one of our country’s greatest success stories, helping revitalize rural America. It provides tremendous benefits in terms of job creation, energy security, and environmental performance. We will continue to work with EPA to keep moving the RFS forward, just as the president has promised. READ MORE

Ethanol Report for the New Year (Renewable Fuels Association/Energy.AgWired.com; includes AUDIO)

LETTERS TO THE EDITOR: Fuel regulations (Goshen News)

Viewpoint: Asia’s ethanol market faces uncertainty (Argus Media)

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