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RFA: US Ethanol Exports at Highest Level in 2011

16 January 2012

GLOBAL - The Renewable Fuels Association (RFA) says the ethanol exports for last year could have been more than 1.1 billion gallons, thanks to a new monthly record set in November.

More than 150 million gallons was exported in that month, according to government figures, going mainly to Brazil. The fuel was also exported to Canada, Mexico and the Netherlands were the other main export destinations.

From November 2010 to November 2011, more than 1 billion gallons was exported and the total for 2011 was due to hit 1.11 billion gallons.

However, these exports are the ones that did not qualify for an ethanol blend tax credit because the ethanol was not mixed with petrol before being exported.

"Exports have become an important part of the business model for American ethanol producers," says Geoff Cooper, VP of research and analysis at the RFA. "American ethanol producers are the lowest cost provider of motor fuel today and have ample supplies available to help meet ethanol demand around the globe. While the preference for American producers would be to use more ethanol domestically through use of higher ethanol blends like E15, E30 and E85, overseas markets will remain a viable and important part of America's ethanol industry."

Last month, Cooper said that US policies had 'perversely incentivised' the importation of ethanol from Brazil and he estimates that this will continue throughout this year.

TheCropSite News Desk

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