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Trade disruptions haven’t soured high hopes for ethanol exports

The chief economist for the Renewable Fuels Association says trade disruptions have not soured expectations for significant growth in ethanol exports.

Scott Richman tells Brownfield with Mexico back in the fold, the U.S. can expect that country’s appetite for corn to expand.

They’re a very large buyer of corn already from the United States.  They’re the number one buyer of distillers grains, which is wonderful.  They are already a significant but not large-scale buyer of ethanol.”

He says Mexican energy reforms should allow for more access of ethanol blends like E6 and E10.

A market with much more potential, Richman says, is China.

“They are in the process of rolling out national E10.  We’re quite hopeful that as the trade situation gets resolved, U.S. ethanol is going to have a significant role in that.  It’s just a natural fit.”

Speaking to Brownfield at the 2018 Export Exchange in Minneapolis, Richman says China will become more reliant on renewable fuels to combat significant air quality problems and its dependence on petroleum imports.