USGC Identifies Top 5 Ethanol Market Priorities for 2023

Business News/Analysis, Canada, European Union (EU), France, Germany, India, Indonesia, Japan, Marketing/Market Forces and Sales, Netherlands, Opinions, Other Conferences/Events, Philippines, Policy, Presentations, Singapore, Southeast Asia, Thailand, UK (United Kingdom), Vietnam

March 13, 2023

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(U.S. Grains Council/Ethanol Producer Magazine) … U.S. ethanol exports for marketing year (MY) 2021/2022 totaled 1.45 billion gallons (Bgal), the third-largest marketing year on record, worth $4 billion. As the 2022/23 MY takes off, the Council continues to work worldwide to promote U.S. ethanol’s quality, reliability and value worldwide, with a renewed focus on Canada, Japan, the European Union (EU) and United Kingdom (U.K.), India and the Southeast Asia (SEA) region.

Canada has been the most consistent ethanol export market for the U.S. since 2010.

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One of the largest markets for U.S. ethanol is Japan.

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The EU has also been setting records and was the third-largest market for U.S. ethanol in MY 2021/22, totaling nearly 140 Mgal, more than double from the previous marketing year. Member states such as France and Germany continue to increase their greenhouse gas (GHG) emission reductions through increased consumption of ethanol and the Netherlands and Sweden have rolled out their own E10 mandates.

The U.K. continues to increase its consumption of ethanol and was the sixth-largest market for U.S. ethanol in MY 2021/22, totaling over 80 Mgal, up over 300 percent from the previous marketing year.

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India is a top 10 market for U.S. ethanol year-over-year. It was the fourth-largest market for U.S. ethanol in MY 2021/22, totaling nearly 130 Mgal. Industrial ethanol will continue to represent a short-term opportunity for U.S ethanol producers with the removal of the five percent customs duty on imported denatured ethanol. Given the country’s ambitious blending target of E20, U.S. ethanol can facilitate supply gaps, with the Council’s office there anticipating a potential 200 million gallon market by 2025.

Record U.S. ethanol exports to Singapore placed it as the ninth-largest market in MY 2021/22, totaling 51 Mgal, up more than 1,000 percent from the previous marketing year. The majority of those exports had an end destination of Indonesia in the form of preblended E3 gasoline. The Southeast Asia (SEA) region represents many promising transportation markets receptive to ethanol’s octane economics and carbon reduction impacts. Countries like Thailand, the Philippines and Vietnam all have robust blending policies and strong domestic industries that complement the Council strategy to increase education and expand awareness of ethanol’s blending benefits. READ MORE

USGC joins Duckworth in Japan to discuss ethanol possibilities (Ethanol Producer Magazine)

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