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New ethanol MOU with Panama could boost demand

The US Grains Council and the Industrial Association of Sugar Cane of Panama have signed a memorandum of understanding (MOU) to recognize the benefits of biofuels.

USDA Undersecretary for Trade and Foreign Agricultural Affairs Alexis Taylor, who was in Panama for the signing, says the MOU will boost economic and energy security and strengthen the trade ties between the two countries.  “Our U.S. industry and the Panamanian industry are coming together to help grow this ethanol market here,” she says.  “One that will benefit, obviously, U.S. producers and Panamanian producers and consumers.  But also, the environment.”

Panama’s president recently signed a law to initiate ethanol blending into the country’s gasoline supply.  Taylor says this is an opportunity to grow Panama’s ethanol market.  “One of the things they’re going to be doing is really building some cooperation, information sharing on how you implement regulations around ethanol blending policy,” she says. 

According to the US Grains Council, global ethanol consumption was more than 27 billion gallons in 2022.