Growth Energy wants China ethanol market back

Biofuels groups are tired of ethanol being excluded from China’s phase one purchases.

Growth Energy senior vice president of global markets Craig Willis says it’s been two years since the Chinese imported ethanol from the U.S.

“It was our third-largest export market, so there’s a ton of potential there. It’s the second-largest gasoline market in the world. They have an E10 program, so they can use 10 percent ethanol.”

Willis believes China could be a one billion-gallon market, which would essentially double U.S. ethanol exports.

But he tells Brownfield barriers remain.

“During the trade war the tariff on U.S. ethanol was raised to 70 percent, and frankly most products with a 70 percent tariff are just not going to pencil into the country. And that’s the same with ethanol. That’s why we’ve been shut out now since March of ’18.”

Growth Energy is asking the Trump Administration to request that China lowers its ethanol tariff to five percent.

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