crops and other products
such as ethanol.
China currently imposes
a 70% duty on U.S. ethanol,
Dwyer says, but it will have
to find a way to import
foreign ethanol if it aims
to fulfill the mandate it has
imposed to use a blend of
10% ethanol and 90% gaso-
line (E10) by 2020. If trade
issues between the U.S. and
China are resolved, Dwyer
says, ethanol imports by
China in 2020 could hit
between 300 million gallons
and 1 billion gallons.
Kelly Nieuwenhuis, a
farmer from Primghar,
Iowa, who traveled to China
last year on a U.S. Grains
Council trade mission, says
that he was told by Chinese
gasoline retailers that they
FUTURE OF ETHANOL EXPORTS
EXPORTS OF U.S. ETHANOL COULD HIT A RECORD
4 BILLION GALLONS A YEAR IN 2022.
E
xports of U.S. ethanol could set another record this year,
according to Mike Dwyer, chief economist for the U.S.
Grains Council.
U.S. ethanol exports during the current marketing year
that ends August 31, 2019, are on track to hit between 1.8
billion gallons and 2 billion gallons, Dwyer predicts. If achieved,
that amount of ethanol exports would top the current record
of 1.62 billion gallons set during the marketing year that ended
August 31, 2018. During that 12-month period, U.S. ethanol
was exported to 74 countries, according to the USDA’s Foreign
Agricultural Service.
The U.S. Grains Council and its ethanol export market
development partners – the Renewable Fuels Association and
Growth Energy – have set a goal of boosting U.S. ethanol
exports to 4 billion gallons a year by 2022, Dwyer states. The
Grains Council believes that by 2022, 75% of U.S. ethanol
exports will go to six countries: China, India, Japan, Brazil,
Canada, and Mexico.
The U.S. Grains Council is a Washington, D.C.-based orga-
nization that promotes the exports of U.S. corn, sorghum, and
barley and value-added products made from those commodities.
Dwyer says the Grain Council’s global strategy includes
selling ethanol to China despite trade disputes between the
U.S. and China that have roiled the markets there for U.S.
Illustrations: Vectorios2016
Source: U.S. Grains Council
want to do business with
the U.S. ethanol industry.
The Chinese also expressed
a desire to use more ethanol
because it knows that will
improve the air quality,
Nieuwenhuis says.
Ethanol to Mexico
R
on Lamberty, senior vice
president and market
development director for
the American Coalition
for Ethanol in Sioux Falls,
South Dakota, has made
seven trips to Mexico to ad-
vise the transportation fuels
industry there on how it can
integrate the use of E10 into
Mexico’s fuel supply.
Mexico has made the use
of E10 legal in the country,
Lamberty says, however, a
Reid vapor pressure (RVP)
waiver or the use of a
lower RVP blendstock
would be required for E10
to be used in the nation’s
three largest cities: Mexico
City, Guadalajara, and
Monterrey. Small quanti-
ties of ethanol are currently
being sold in Mexican cities
on the U.S.-Mexico border,
Lamberty says.
Lamberty has participat-
ed in technical workshops
on ethanol that have been
held for Mexico’s petroleum
equipment installers and
retailers. The workshops
were a joint effort of the
U.S. Grains Council and
the Mexican Association
of Petroleum Equipment
Suppliers, and they were
intended to inform Mexican
fuel marketers about sourc-
ing, blending, distributing,
and retailing ethanol-blend-
ed gasoline.
Mexico’s potential annual
use of E10 totals 1.2 billion
gallons, Lamberty says.
bonus Successful Farming at Agriculture.com |August 2019
c r o p s
By Jerry Perkins
1
2
3
BRAZIL
464,903,286
MT
CANADA
336,912,398 MT
INDIA
165,761,349 MT
EU UNION
109,627,973 MT
CHINA
99,845,422 MT
5
4
Top U.S. Ethanol Export Customers
For the 2017/2018 marketing year in metric tons.
- South Korea: 69,691,290 MT
- Philippines: 67,227,356 MT
- Peru: 48,307,090 MT
- United Arab Emirates: 47,411,816 MT
- Colombia: 37,491,414 MT
