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Washington, June 11 – The
Renewable Fuels Association reported April ethanol exports of 40.8 million
gallons* (includes both denatured and undenatured non-beverage). That volume
compares to 48.3 million gallons in March. Year-to-date exports are 124.3
million gallons, which means 2010 exports have already surpassed exports for
the entire 2009 calendar year (113.3 million gallons). Denatured ethanol exports
were virtually unchanged, but exports of undenatured non-beverage ethanol
dropped by roughly 25%.
Exports to the EU, India,
Jamaica, Australia, and Canada were up or stable. But
exports to Brazil
dropped to virtually zero, as Brazilian ethanol output rebounded from previous
months.
“American ethanol producers continue to be forced
to look for overseas markets for their product as domestic markets for ethanol
remain saturated due to the regulatory cap on blending levels,” said RFA Vice
President of Research Geoff Cooper. “The transition of the United States
to a net ethanol exporter due to its status as the low cost producer today is a
reflection of the industry’s commitment to improving efficiencies and
displacing petroleum. However, it also underscores the domestic opportunities
lost due to the arbitrary cap on ethanol blending. As a matter of national
energy security, America
should first seek to maximize its use of domestic renewable fuels before it
turns to overseas markets.”
The ethanol industry is awaiting a decision by the
U.S. EPA on increasing ethanol blending allowances from 10 percent to 15
percent. Additionally, some in the industry have urged EPA to provide some
immediate market relief through the approval of 12 percent blends while it finalizes
work on E15.
RFA explored the issue of increasing U.S. ethanol
exports in a five-page report released in May, available at: www.ethanolrfa.org/page/-/US%20Ethanol%20Export%20Paradox.pdf?nocdn=1
*
Source: Dept. of Commerce, Census Bureau, USDA-FAS; Export figures represent
sum of “Ethyl alcohol and other spirits, denatured, of any strength” and
“Undenatured ethyl alcohol of an alcoholic strength by volume of 80 percent
vol. or higher.” Thus, the figures likely include ethyl alcohol exports for
non-fuel industrial purposes.
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