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Mexico approves 5.8% ethanol fuel blends outside major metropolitan areas

Mexico has passed a regulation that approves the blending and sale of ethanol outside of its three major metropolitan areas.

The Energy Regulatory Commission of Mexico (CRE) has published its recently-passed fuel regulation (NOM-016-CRE-2016) in the Mexican federal register, allowing for the blending and sale of up to 5.8% ethanol in the nation’s fuel supply outside of the three major metropolitan areas of Mexico City, Guadalajara, and Monterrey.

The fuel specification will become effective 60 days after publication, marking the first time in history that Mexico has established a policy on ethanol.

Organisations in the US working to promote the export of US-produced ethanol applauded the development by its close trading partner south of the border.

"The Mexican Energy Regulatory Commission has taken an important step forward in improving the quality of motor fuel provided to its citizens," said Emily Skor, CEO of Growth Energy, a US ethanol trade association. 

"These standards aren’t applied universally throughout the entire country, however, so there is certainly more progress to be made. Our collective goal should be greater harmonisation across all of North America on fuel regulations that embrace cleaner burning biofuels like ethanol because that is in the best interest of every mother, father and child,” Skor continued.

The US Grains Council (USGC) also says it is pleased with the decision and will seek to build closer ties with the country’s authorities.

“The USGC has worked in Mexico for many years and has seen enormous growth in that market’s demand for US products of all types in the past two decades. We look forward to continuing to work with our colleagues in the US ethanol industry to provide Mexican regulators, fuel industry officials, and the public with information that highlights the proven benefits ethanol can provide for air quality and rural economic development in their country,” said Tom Sleight, president and CEO of the USGC.

But Bob Dinneen, president and CEO of the Renewable Fuels Association, commends the Mexican regulators but does not believe the current regulation is not far-reaching enough and says it should also include the metropolitan areas.

"Ethanol blended petrol can reduce all criteria pollutants – carbon monoxide, ozone, particulates and toxics. As a result, we believe the Energy Regulatory Commission has erred in excluding ethanol use from the three most populous cities.

"We will continue to work with our partners here and the Mexican government to assure the most up-to-date science is applied, providing the Commission with confidence the use of ethanol will help them in their effort to fight ozone pollution and provide a more open and competitive market for the benefit of Mexican consumers," Dinneen said.





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