The Renewable Fuels Association has released a report that confirms the United States is quickly evolving into a net exporter of ethanol. The report, "The Paradox of Rising U.S. Ethanol Exports," states that as long as domestic ethanol usage is restricted by the regulatory limitation of 10% blends the U.S. ethanol industry will be forced to look to the global marketplace for new demand sources. As a result Americans will miss out on the opportunity for greater fuel savings and a healthier, more secure domestic energy supply.
One fact encouraging ethanol exports is consistent and predictable biofuels policies of individual nations. If those policies remain steady then the global market will react accordingly and product will be traded efficiently. However, what truly disrupts global trade is unpredictable ethanol tax and trade policies that are irregularly adjusted based solely on the current economic health of the domestic industry. Such is the case with Brazil.
RFA Vice President of Research Geoff Cooper questions: do we want to export our biofuels and the benefits they provide or do we want to use them here at home to help secure our energy future? Today's industry can do both. However, Cooper says current regulations restrict the amount of ethanol that can be used domestically. Therefore the industry is being forced to look to the export market for additional growth opportunities.
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