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Government official: Argentina could double current ethanol mandate in three years

Argentina has the potential double its current 12% ethanol blending mandate in the next two to three years, according to a government official.

Nestor Roulet, secretary of added value at the Argentinian Ministry of Agriculture, told Reuters that the South American country’s annual ethanol consumption could rise to 2 million m3, which could help Argentina reduce its energy deficit.

"The state's policy is to increase the percentage of ethanol in petrol," Roulet said in an interview with Reuters. "If all goes well, the use of ethanol could double within two to three years."

President Mauricio Macri lifted export taxes and limitations on corn in December 2015, which Roulet said lead to increased plantings and thus Argentina would have no issue sourcing the needed corn for increased ethanol production.

Argentina's corn harvest is seen at 37 million tonnes in 2016/17, a 23% increase from last season, according to the Buenos Aires Grains Exchange.

The country is the world’s third largest corn exporter, despite using 1.2 million tonnes of corn annually for ethanol production.

According to Roulet, there is “significant” private sector interest in investing in expanded ethanol production capacity.

In addition to the ethanol mandate, Argentina also requires 10% biodiesel to be blended into diesel fuel sold in the county.





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