US fuel ethanol exports are on pace for a record year, averaging 121,000 barrels per day (b/d) in the first eight months of 2024, driven by strong global demand and low prices, the US Energy Information Administration reports.
The US, the world’s largest producer and exporter of fuel ethanol, has benefited from demand in countries with biofuel blending mandates, while US fuel ethanol prices have been low in 2024, down 25% from 2023 levels, because of large domestic inventories and low input prices.
Higher sales to Canada, - the US’ top buyer, Colombia, India and the UK account for more than 60% of the growth from 2023 to 2024. The largest rise has been to India, which uses imported ethanol for industrial purposes, freeing up domestic product for its fuel ethanol blend targets. The UK, the second-largest market for US fuel ethanol since 2023, also increased imports significantly, driven by the E10 petrol standard introduced in 2021 and the UK’s Renewable Transport Fuel Obligation programme.
Separate data compiled by the Renewable Fuels Association (RFA) showed that in the first nine months of 2024, US ethanol exports have reached a record 1.39 billion gallons (5.26 billion litres), up 37% year-on-year. In September, exports to the EU rose for the second month in a row, climbing 44% to a six-month high of 18.3 million gallons.
