Source: MEATINGPLACE, 5/30/16

USDA led a trade mission to Mexico May 24-25 to encourage implementation of a renewable fuels program in the country that could create a market for U.S. ethanol exports.

USDA Acting Deputy Secretary Michael Scuse led the effort. Participants, including representatives from the Renewable Fuels Association (RFA), U.S. Grains Council (USGC) and Growth Energy, met with government officials, legislators and Mexican private industry executives.

“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,” said Ryan LeGrand, USGC director in Mexico.

Mexico’s state-owned oil company Pemex plans to begin selling E6 (5.8 percent) ethanol-blended gasoline in selected cities in the Mexican states of Tamaulipas, San Luis Potosi and Veracruz. Mexico’s program focuses on ethanol blended from sugar cane.

Implementation of a nationwide E6 fuel option in Mexico would create a potential market for 790 million gallons of ethanol, RFA said.

“With domestic use artificially capped by EPA at 14.8 billion gallons, we will continue to seek export opportunities,” said RFA General Counsel Ed Hubbard, who attended the trade mission.

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