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Global opportunities for ethanol

The global market presents a growth opportunity for U.S. ethanol exports.

Growth Energy CEO Emily Skor says the global blend rate is 7.2 percent and adoption of E10 in other countries could benefit the U.S. sector.

“Looking at the total potential ethanol demand and what we think our take could be of that, based on our current trade relations in their markets, that’s an additional over 5 billion gallons of ethanol,” she says.

She says more countries are turning to ethanol to meet climate goals.

“It allows them to deliver on their clean climate goals or their clean air goals or affordable fuel for their consumers goals,” she says. “in this time where there is an increasing attention on climate, we’re seeing a lot of excitement about ethanol. Canada, for example, is working on a clean fuel standard to move the nation to an E15 percent blend by 2030.”

About 10 percent of total U.S. ethanol production is exported. Canada is the sector’s top trading partner with 24 percent of U.S. exports going to that country in 2020. Brazil and India are also top exporters.

Skor says global demand for ethanol was not impacted as much as domestic demand during the coronavirus pandemic.