After a disastrous couple of years brought on by high corn prices and low demand, the US corn ethanol business has emerged as a force in global energy markets.
The US pumps out a record 37m gallons of ethanol a day, easily surpassing rival Brazil’s sugar-based industry in output.
Producers are running out of places to put this ethanol. The US government mandates 12bn gallons in the fuel supply this year, but a decline in American driving and a 10 per cent cap on how much can be blended into motor fuel has created a glut.
“The domestic market here in the US is essentially saturated. We are looking for a home for the surplus,” says Geoff Cooper at the Renewable Fuels Association, a US trade group.
That home is increasingly abroad. US ethanol exports are more than double those of a year ago, totalling 251m gallons in the nine months through September. Let me get this straight. T Boone Pickens says the greatest transfer of wealth in history is from the U.S. to oil producing nations who often hide and help our mortal enemies.
source: aginfo
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