Global Marketplace
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Global Marketplace

Fair access to foreign markets and increased incorporation in U.S. international energy engagements will grow American agriculture and give American ethanol producers greater access to global markets. Current trade negotiations could eliminate unfair trade practices and build upon U.S. ethanol’s robust trade surplus. Resolving tariff and non-tariff trade barriers, including inaccurate carbon intensity scores, will help U.S. exporters satisfy growing ethanol demand across the globe.

Biofuels in the global marketplace are one of the most cost effective and expeditious solutions for nations looking to lower their emissions.

The Asks

Congress and the Administration should:

  • Encourage U.S. trade diplomats to combat unfair trade barriers and tariffs imposed on American ethanol —
    including by countries that restrict imported fuel ethanol (India, Indonesia), have prohibitive tariffs (Brazil, China), or inaccurately restrict corn feedstocks (EU, U.K.).
  • Expand current ethanol blending opportunities (Canada, Japan, Vietnam) and open new export opportunities for low-carbon biofuels across the globe (Mexico, Nigeria).
  • Ensure strong U.S. government engagement in international organizations to ensure international lifecycle emissions models accurately, scientifically, and fairly reflect U.S. ethanol’s improved efficiencies and circumstances.

How Does America’s Bioeconomy Fit into the Global Marketplace?

The U.S. is the world leader of bioethanol production, consumption, and exports, purchasing 500 million bushels of corn to produce about 15 billion gallons of bioethanol each year. About 10% of that total is exported annually. The value of that bioethanol is $4 billion, and the value of the corn purchased is $3 billion. The U.S. bioethanol industry also exports 11 million metric tons of dried distillers’ grains (DDGS), a nutrient-rich animal feed made during bioethanol production, with a total market value of about $4 billion.

The world average blend rate (excluding the U.S. and Brazil, which is the second-largest producer and consumer of bioethanol), is about 2%. Growth Energy’s goal of reaching a 10% average blend rate globally represents a huge growth opportunity, as does the growing global demand for sustainable aviation fuel (SAF).

Which Countries Are the Biofuels Sector’s Biggest Trading Partners?

Our strongest trading partner for the past several years has been Canada, which is still considered a growth market. Other top export destinations are the European Union (EU), the United Kingdom, India, Colombia, and Japan.

How Does Growth Energy Advocate on Behalf of the U.S. Bioeconomy Abroad?

Growing foreign markets is a cornerstone of our advocacy because doing so would benefit the bioethanol industry at home and abroad. We work in conjunction with other industry leaders and U.S. government officials to raise awareness and bolster the reputation of bioethanol overseas. Growth Energy also advises foreign governments on how to successfully implement smart biofuels regulations and legislation. Our goal is to drive market growth beyond U.S. borders—an effort that has paid and continues to pay dividends for American farmers and bioethanol producers.

What Impact Would Growth Energy’s Policy Priorities Have on Consumers, the Economy, or the Environment?

  • Tariffs, technical trade barriers, and inaccurate carbon intensity scores pose challenges to U.S exporters looking to satisfy growing biofuels demand across the globe. The fewer roadblocks biorefineries face in their efforts to ship goods overseas, the greater the benefit to their operations and to the rural communities they support.
  • Canada, Japan, and other countries’ continued commitment to expanding the use of biofuels to decarbonize their liquid fuel sectors has the potential to expand U.S. biofuels exports in a way that economically and environmentally benefits all parties.