Ethanol's Future Created by rrummel on 1/11/2014 10:40:44 AM
New Opportunities Ethanol Export
According to government data released this week - U.S. ethanol exports surged to 82.4-million gallons in November. Large volumes were moved into new or emerging markets like China and India - as well as the Philippines, Tunisia, Panama and Mexico. Total exports were up 54-percent from October to the highest monthly level since March of 2012. Canada was the leading importer of U.S. product - receiving 28.5-million gallons in November. The Philippines followed with an annual high of 14-million gallons. Other top destinations included India, Brazil and Norway. A sizable volume of fuel ethanol - 3.5-million gallons - was exported to China for the first time since 2002. Panama also imported meaningful volumes of U.S. fuel ethanol for the first time since 1992. Tunisia and Mexico are relatively new markets that imported U.S. product in November. Renewable Fuels Association President and CEO Bob Dinneen touts the uptick of exports to China and India as a huge opportunity for the ethanol industry and an indicator that ethanol demand continues to expand and grow overseas. He notes U.S. produced ethanol continues to be the lowest cost liquid transportation fuel on the planet. He says the fact that rapidly developing countries like China and India are turning to the U.S. for fuel supply is a reflection of that economic reality and the effort of U.S. producers to look beyond our borders to build demand. With other new markets and markets expanding ethanol consumption - Dinneen says RFA sees a huge overseas market emerging.
Government data this week also showed exports of DDGs surged to a new monthly record in November. November DDGS exports totaled a record 1.08-million metric tons - a 16-percent increase from October. China was the leading destination - bringing in more than 57-percent of the total. Rounding out the top five markets for DDGS exports in November were Mexico, Japan, South Korea and Canada.