U.S. ethanol exports: New markets mean missed opportunities for domestic market

Ethanol Producer Magazine
May 2010
News release posted May 19, 2010

Washington – Ethanol exports have boomed in recent months, with shipments destined for dozens of energy-thirsty nations around the globe, including some in the Middle East. The United States has been a net importer of ethanol for the last decade, but the nation is quickly evolving into a net exporter. While this is welcomed news to an industry looking for new markets, it serves to undermine the fundamental value of America’s ethanol industry as a domestic replacement for imported oil. A new analysis from the Renewable Fuels Association (RFA) seeks to put this recent trend into context.

“The fact that U.S. ethanol exports are surging as domestic markets become saturated demonstrates that America’s ethanol industry can and will compete globally. The question becomes: Do we want to export our biofuels and the benefits they provide, or do we want to use them here at home to help secure our energy future? Given the opportunity, today’s industry can do both,” said RFA Vice President of Research Geoff Cooper. “Unfortunately, current regulations restrict the amount of ethanol that can be used domestically. Therefore, the industry is being forced to look to the export market for additional growth opportunities.”

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