Home Indiana Agriculture News Ethanol Industry Looking South for New Business

Ethanol Industry Looking South for New Business

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Corn growers and ethanol manufacturers are increasingly frustrated with blending waivers for oil refiners deflating the domestic biofuel market.

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. Trade groups are looking south of the border for more business.

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 its three largest cities, which are Guadalajara, Mexico City, and Monterrey.

But, Ryan LeGrand, CEO of the U.S. Grains Council, expects Mexico’s energy officials to offer up a proposal to allow E10 in those three locations by the end of 2019.

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