USGC Boosts Ethanol During Southeast Asia Trade Mission

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By US Grains Council | August 26, 2022

The US Grains Council’s Southeast Asia and Oceania (SEA&O) office recently participated in the Clean EDGE Asia Trade Mission, a trade mission focused on clean and renewable energy hosted by the US Department of Commerce . The mission was aimed at increasing U.S. exports of goods and services to the Indo-Pacific region in order to enhance energy security, improve energy access, promote open and efficient energy markets, and advancing clean energy and climate goals in Southeast Asia.

The trade mission made stops in Indonesia, Vietnam and the Philippines – three key markets for USGC’s ethanol-focused programs – where delegates met with government and industry stakeholders in the clean and renewable energy sector. Council representatives were joined by ethanol industry partner Growth Energy for the duration of the trade mission.

“Clean EDGE was an opportune time to further communicate to stakeholders in the region the environmental benefits of fuel ethanol and highlight its availability as a tool to immediately mitigate emissions from the transportation sector,” said Caleb Wurth, Director USGC SEA&O Regional.

“The mission also provided us with an opportunity to strengthen alignment with the U.S. Department of Commerce as the department and its sister agencies implement the Clean Energy Pillars of the Indo-Pacific Economic Framework (IPEF). The Board sees the IPEF as an additional strategic tool to promote the use of ethanol throughout Southeast Asia.

The three countries visited are the highest priority markets for USGC’s ethanol programs in Southeast Asia, given their consumption volumes and commitment to mitigating emissions from the transportation sector.

The Philippines currently consumes more than 1.5 billion gallons of gasoline annually and is a regional leader in fuel ethanol use, having maintained an E10 mandate since 2011. U.S. ethanol currently provides approximately 40% of the country’s annual ethanol demand of about 170 million gallons per year. Regulators are currently evaluating an extension of the E10 mandate to a discretionary E15 or E20 cap with the aim of further mitigating transport emissions and creating more space for retailers to generate savings for consumers.

Indonesia, the fourth most populous country in the world, consumes about 10 billion gallons of gasoline per year and is on track to become one of the largest gasoline markets in the world based on its growth rate current. The Council is working with stakeholders to implement a new E5 pilot project in major metropolitan areas that requires some 6.6 million gallons of ethanol. This is in addition to maximizing the three percent ethanol allowance in imported gasoline due to the Council’s work to remove the ban on ethanol from Indonesia’s fuel specifications.

Vietnam consumes nearly 3 billion gallons of gasoline each year, and demand is expected to grow at a double-digit rate over the next five years. U.S. fuel ethanol, which supplies a significant portion of Vietnam’s existing demand, can further support this growth by helping the country meet its emission reduction commitments and reduce fuel costs for its middle class by full growth. Currently, regulators are evaluating the expansion of the country’s E5 RON 92 mandate.

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