Sep 18, 2023
Potential policy changes in Asia could create massive demand for imported ethanol that U.S. producers are ready to meet. The U.S. Grains Council conducted several events across the continent this summer to support that goal by informing local government officials and industry leaders about the positive impact of implementing higher ethanol blends in their countries.
The Vietnam Ministry of Industry and Trade, Vietnam Petroleum Association and the USGC jointly organized the first iteration of Decarbonize Asia: Vietnam Biofuels Forum in July to discuss technical, commercial and environmental considerations for the expansion of fuel ethanol use in the country.
Approximately 150 participants, including regulators, policymakers, Vietnamese biofuel producers and fuel companies, international vehicle manufacturers, technology providers and academia, attended the forum. Additional presentations focused on Vietnam infrastructure and vehicle compatibility with E5 and E10; Southeast Asia ethanol trends and developments; U.S. ethanol sustainability; ethanol-to-jet fuel pathways; carbon sequestration technologies; and consumer sentiment about ethanol in Vietnam.
The forum was an opportunity to showcase the benefits of U.S. biofuels while Vietnam’s government is evaluating a potential policy action to migrate its E5 RON92 mandate to all grades of gasoline. An E5 mandate in Vietnam would increase ethanol demand by 400 percent and create a potential export market of 95 million gallons per year for U.S. fuel ethanol.
The strategic ethanol partnership between Vietnam and the United States is a strong example of how our two countries can work together to find mutually beneficial solutions to decarbonize road transportation, bolster fuel security, improve human health and generate further investment against the backdrop of the clean energy transition.
The international transportation sector, a significant contributor to carbon emissions, plays a crucial role in this process. The urgency to reduce carbon emissions has led more than 60 countries worldwide to adopt low carbon fuel policies to capture the environmental, human health and economic benefits of ethanol.
The Taiwanese government, motivated by the effects of climate change, has set an ambitious goal of achieving net-zero carbon emissions by 2050. To accelerate progress, the council held a policy discussion meeting, the Diversified Carbon Reduction & Sustainable Development Forum in Taipei, Taiwan, in June.
The meeting attracted industry representatives from sectors including energy, transportation, environmental protection and the vehicle industry.
The USGC’s Taiwan office is consolidating these recommendations into a comprehensive policy proposal on behalf of the industry. Additionally, the United States’ experience in net-zero transportation policy, specifically in the low-carbon fuel domain, is expected to advance cooperation between Taiwan and the United States and open avenues for U.S. producers to supply the country’s growing interest and need for biofuels.
The council has also been active with programming in Korea and Japan, laying the groundwork for higher biofuel blends throughout the region. By building strong relationships and establishing a track record of continued engagement in Asia, U.S. ethanol producers can feel confident about the emergence of new and larger global marketplaces with ample opportunities for sales.
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