Ethanol Industry Looking South (of the Border) for New Business

Corn growers and ethanol manufacturers are increasingly frustrated with blending waivers for oil refiners deflating the domestic biofuel market, but while those groups continue to negotiate with the White House for a solution to the challenge, the industry is looking at foreign buyers as a way to make up for lost sales.

The U.S. Grains Council and the American Coalition for Ethanol have been working with Mexican officials to promote the use of a 10 percent ethanol blend in Mexico. They’re hosting workshops on the topic and using them to target Mexico’s gas station owners, petroleum equipment retailers, as well as the nation’s ag and energy leaders.

U.S. ethanol exports to Mexico have been used more for producing other products instead of as transportation fuel. However, retailers in border locations are buying more pre-blended E10 at U.S. locations and reselling it at Mexican gas stations. Mexico currently allows E10 sales nationwide, except in Guadalajara, Mexico City, and Monterrey, the nation’s three largest cities.