U.S. Ethanol Exports Keep Robust Growth
June 14, 2010The Renewable Fuels Association reports that the US ethanol industry is picking up pace as an ethanol exporter. The April ethanol exports of 40.8 million gallons are slightly down from 48.3 million gallons in March (including both denatured and undenatured non-beverage). Year-to-date exports are 124.3 million gallons, which means 2010 exports have already surpassed exports for the entire 2009 calendar year (113.3 million gallons). Exports to the EU, India, Jamaica, Australia, and Canada are on upward trend.
RFA Vice President of Research Geoff Cooper said:
“American ethanol producers continue to be forced to look for overseas markets for their product as domestic markets for ethanol remain saturated due to the regulatory cap on blending levels. The transition of the United States to a net ethanol exporter due to its status as the low cost producer today is a reflection of the industry’s commitment to improving efficiencies and displacing petroleum. However, it also underscores the domestic opportunities lost due to the arbitrary cap on ethanol blending. As a matter of national energy security, America should first seek to maximize its use of domestic renewable fuels before it turns to overseas markets.”
The ethanol industry is awaiting a decision by the U.S. EPA on increasing ethanol blending allowances from 10 percent to 15 percent. Additionally, some in the industry have urged EPA to provide some immediate market relief through the approval of 12 percent blends while it finalizes work on E15.
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