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China ethanol goals could benefit U.S.

The Renewable Fuels Association (RFA) is cautiously optimistic China’s ethanol goals will positively impact the U.S.

The Chinese National Development and Reform Commission and energy administration 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.”

He projects Chinese ethanol demand could exceed four billion gallons.

Dinneen tells Brownfield China—the world’s third largest ethanol producer behind the U.S. and Brazil—can’t achieve this objective alone.

“And 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 points out having former Iowa Governor Terry Branstad as Ambassador to China should prove beneficial, given his long-time support of renewable fuels.