USGC ethanol export programme yields $15m sales to Peru

The US Grains Council’s ethanol export promotion programme has seen an early success with a US exporter confirming significant sales of US ethanol to Peru.

The 10 million gallons of ethanol, valued at more than $15 million (€13.7m), were sold after the US Grains Council (USGC) led a team of Peruvian ethanol buyers and producers to participate in the International Fuel Ethanol Workshop in Minneapolis.

The guests also visited ethanol production facilities and trading companies in Iowa, Illinois, and Texas.

‘The conference and visits provided the ethanol buyers with the opportunity to see the reliability of US ethanol production and learn more about the price competitiveness of US ethanol exports,’ says USGC manager of ethanol export programmes Ashley Kongs.

The visiting team was formed through a partnership of the USGC, the Renewable Fuels Association, Growth Energy, and the US Department of Agriculture’s Foreign Agricultural Service.

These partners are working together to promote US ethanol sales around the world.

The programme is also sponsored in part by the Ohio Corn and Wheat Growers Association.

According to USGC chief economist Mike Dwyer, the sales came in the aftermath of recent policy changes in Peru’s energy sector that creates new demand for ethanol.

‘While Peru has a few modern ethanol production facilities, domestically-produced ethanol is still a relatively new industry. While it develops, Peru’s growing appetite for ethanol can be met with imports from the US,’ Says Dwyer.

In 2008, Peru established its renewable energy portfolio standard with the goal of creating an energy system that was sustainable and reliable.

The four priorities that make up the heart of the strategy are implementation of measures to increase energy efficiency, continued development of the country’s natural gas industry, integration of electricity markets in the Latin American region, and minimisation of environmental impact in part by expanding the use of low-carbon technologies.

Just two years later, in 2010, Peru began requiring a 7.8% ethanol blend in its conventional gasoline.

‘As a result of the US-Peru free trade agreement, Peruvian trade barriers to US goods, services, and investments have been reduced, making the US a prime choice for becoming the long-term supplier of ethanol to this market,’ Dwyer says.

‘We will continue building on this success through buyers’ teams, workshops, and providing important market information that will build the confidence of Peru’s energy industry in US ethanol.’