Ethanol Sets Sights on Asia-Pacific Region

by Tom C. Doran (AgriNews) The U.S. Grains Council has long served as an international promoter of corn and other grain exports and has expanded its efforts to include ethanol and dried distillers grains with solubles.

The efforts coincide with a growing interest in ethanol in the Asia-Pacific region driven in part by ever-growing environmental concerns, especially those related to rising greenhouse gas emissions and deteriorating air quality.

Tom Sleight, USGC president and CEO, spoke of the program’s successes and potential markets in a recent Illinois Corn Growers Association/Illinois Corn Marketing Board-hosted podcast. ICMB invests checkoff money with the USGC to promote exports of Illinois corn.

“We just had a mission come back from China and India. They also had a meeting with the Asia Pacific Economic Cooperation organization in Taiwan, which included 14 countries looking at the possibilities and the benefits of utilizing ethanol as part of their energy and pollution solutions,” Sleight said.

“It’s a global strategy. It’s targeted in several places around the world where we see the best opportunities for growth and it’s starting to get some real momentum and that’s what we like to see.”

A team of ethanol industry representatives from USGC, the Renewable Fuel Association and Growth Energy met with the Asia-Pacific delegates from the countries’ respective energy ministries.

One opportunity for ethanol export growth is in Japan where that country is updating its energy policy for 2017.

“The key work on that is happening right now in talking about the role of ethanol in terms of how it can play a part in Japan’s energy needs,” Sleight said.

“China right now is the second-largest ethanol export market for the U.S., and it’s mainly driven by air pollution concerns. It’s the same thing in India. Mexico is in the process of denationalizing their oil industry, which is creating a lot of interest and a lot of discussion the possibilities of ethanol and blended gasoline going into Mexico.

“Efforts in China and Peru have already resulted in ethanol sales, and Canada’s market is still going strong. But it’s engaging around the world and different strategies that’s making a difference right now.”

Trade with Cuba now is on the USGC radar, and meetings already have taken place.