Argentina to beef up ethanol production

Argentina's government plans to raise its requirement for ethanol blend in gasoline from the current 12% to up to 26% from next year, according to a report in Reuters.

Information about the country's intention to follow suit with Brazil's long-standing ethanol policy came from Patrick Adam, executive director of Argentina's corn ethanol chamber.

A spokesman for the energy ministry was cited as saying that the government was indeed looking to increase the ethanol use demand but that specific goals had not yet been determined.

Argentina, which has been experiencing energy shortfall for some years, in February lifted the ethanol blend from 10%, providing a boost to its sugar industry amid low global prices. The country produces its ethanol from corn and sugarcane.

Most of its current corn production of around 25 million tonnes per year is exported, Reuters reported.