When Congress approved the Renewable Fuels Standard in 2007 that set the course for ethanol to be integrated into the nation’s motor fuel supply, it was only considered to be a product for the domestic market. But the US ethanol industry has found an international demand for corn-based ethanol, and Stu Ellis reports on the multiple benefits of that….
Craig Willis is a former president of ADM’s ethanol refining, but now is a global ambassador for US ethanol and says it the foreign demand is exploding…
Exports of ethanol, just in the last 2 years are up 47%, and why is that? We’re one of the cheapest octanes in the world. We’re cheaper than gasoline. We’re cheaper than a lot of the competing octanes globally, all of the octanes globally. And so we continue to open up markets in other countries as people understand ethanol has good qualities. Number one, its cheap and so it helps cheapen up the price to the consumer in all these countries around the world. Number two, its better for the environment than the hydrocarbons and the chemicals that we’re kicking out. So, we’ve had pretty good luck in opening these markets up, and that’s what my role is working at Growth Energy is helping these countries understand how ethanol can help them. And we talk a lot about, you hear a lot about the Paris agreement. One of the ways these countries can lower their obligations in the Paris agreement is to go to higher level blends. We’re seeing it in Canada right now. Canada is making a big push on low carbon fuels, and ethanol checks that box. And so we see this potential only increasing as we go forward. We see there’s a huge amount of opportunity.
That’s our report from the farm, I’m Stu Ellis with WCIA3, your local news leader.