To Mexico on a renewable fuels mission
WASHINGTON, May 26, 2016 - Mexico
is embracing ethanol and U.S. officials want to make sure they can help,
potentially laying the groundwork for a renewable fuels program and ethanol
exports headed for south of the border.
USDA
Acting Deputy Secretary Michael Scuse is leading a U.S. ethanol mission to
Mexico on May 24–25, along with representatives from the Renewable Fuels
Association, Growth Energy and the U.S. Grains Council.
Last year, Pemex – Mexico’s
state-owned petroleum company – announced its plan to introduce a first-ever
pilot program to blend gasoline with ethanol and reduce emissions by up to 35
percent. This spring, the company said it planned
to begin selling E6 (5.8 percent) ethanol-blended gasoline in selected cities
in the Mexican states of Tamaulipas, San Luis Potosi, and Veracruz.
Implementation
of a nationwide E6 fuel option in Mexico would create a potential market for
790 million gallons of ethanol, according to USDA.
"Our goal is to partner with
Mexico to support the establishment of an economically viable ethanol industry
there, where Mexican domestic production can be supplemented with imported
product from the United States," Scuse said. "The increased use of
ethanol in the North American fuel market will provide citizens from both
countries with an inexpensive source of renewable energy that improves air
quality, reduces greenhouse gas emissions, and stimulates the rural
economy."
Renewable Fuels Association General
Counsel Ed Hubbard, who is on the trade mission, said now is the right time to
explore new trade opportunities. “The U.S. is the world’s largest producer of ethanol and for
several years now has been the low cost supplier as well, allowing us to
dramatically increase our exports. With domestic use artificially capped by EPA
at 14.8 billion gallons, we will continue to seek export opportunities,” said
Hubbard.
“This
trade mission is an excellent example of the importance of ethanol to the
success of nations looking to reduce their imports of harmful fossil fuels in
favor of a cleaner burning and a more economical fuel,” said Growth Energy CEO
Emily Skor. “It is also equally important to our goal of expanding the
marketplace for U.S. ethanol, which is why we’re proud to be participating in
this mission.”
Ryan
LeGrand, USGC director in Mexico, expressed hope that ethanol could one day
become the principal oxygenate used in the country. “We see significant
potential for exports of U.S. ethanol to Mexico — and therefore, U.S. grain
demand — if the right policies are in place.”
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