USGC talks ethanol with Mexican policymakers

By U.S. Grains Council | April 27, 2016

As Mexico works to implement energy reforms, the U.S. Grains Council’s staff there has been working to educate end-users and energy policymakers on the advantages of using ethanol as an oxygenate in fuel.

Last year, Pemex announced its plan to introduce a first-ever pilot program to blend gasoline with ethanol. Since then, it has awarded a few contracts to local ethanol plants, though the relatively small-scale Mexican ethanol industry makes imports seem necessary to meet the country’s immediate fuel ethanol blending needs. This will likely create new opportunities for U.S. exports of ethanol to the market.

“We are meeting with a wide range of stakeholders here in Mexico to start conversations and answer basic questions on ethanol specifications and blending, which will help generate interest in the renewable fuel,” said USGC Director in Mexico Ryan LeGrand.

“We’ve been asked about vehicle performance at varying levels of ethanol blends, how importation and transportation of ethanol works and how a policy change could impact agriculture in Mexico. Being able to provide information on these topics will help local industry figure out their future energy strategy, which hopefully includes U.S. ethanol.”

By answering these questions, the council is increasing these regulators’ confidence in the organization’s ability to provide reliable, transparent information that will be key in their decision-making process.

“We also are providing anecdotal success stories from other overseas markets,” LeGrand said, drawing on the experience of colleagues in USGC offices globally. “This allows our policymakers to see what other importers around the globe have successfully done to create a renewable energy matrix.”

Future ethanol-focused programming from the council’s Mexico City office will include seminars, meetings and face-to-face interactions.

Click here to read past Global Update articles on the Council’s work to build demand for ethanol in Mexico.