A Chinese government agency recently announced a plan to extend the use of biofuels throughout the country by 2020.
RFA president Bob Dinneen calls the move a step in the right direction, but says some important questions need to be answered.
“Right now, all they’ve really done is said that there’s a plan in place that would allow the use of higher level blends. But, they have not yet removed their barriers to U.S. ethanol that could help them meet such a lofty target,” Dinneen says.
He projects Chinese ethanol demand could exceed four-billion gallons a year. Dinneen says China – the world’s third-largest ethanol producer behind the U.S. and Brazil – can’t achieve that objective alone.
“Yet, they’ve got a huge tariff in place that really makes U.S. ethanol impossible to get into the country. So, we hope to work with them, and we certainly hope that they will work with us to open up free and fair trade on ethanol, as well as distillers feed,” Dinneen says.
Nebraska is the nation’s number-two ethanol producing state in the U.S., behind only Iowa. There are 24 ethanol plants in Nebraska that produce a total of more than two-billion gallons each year.
Thanks Mark Dorenkamp, Brownfield Ag News