US Ethanol Market to Reopen in Peru After Tribunal Ruling


“The U.S. ethanol industry remains focused on expanding the global use of low-carbon ethanol, reducing barriers to trade, and elevating the energy discussion, and we favor continued collaboration and cooperation with Peru and other nations that share the vision of a free and open global ethanol market.”

In 2011, U.S. producers exported 273,000 barrels of ethanol to Peru, according to the U.S. Energy Information Administration, https://www.eia.gov/….

Exports spiked to 722,000 barrels in 2012, before dropping to 359,000 by 2014. By 2019, U.S. producers exported 1.13 million barrels to Peru before the duty took effect.

According to the U.S. Grains Council, demand for ethanol in Peru is driven by the mandated blend of ethanol in gasoline set at 7.8%.

The blending mandate was announced in 2005 but wasn’t rolled out until after 2010, after a number of setbacks.

Five regions in Peru are exempt from the mandate as they are sparsely populated and heavily forested so the logistics of supplying the area with ethanol were deemed too difficult.

In 2015, the Peruvian government announced its commitment to reduce greenhouse gas emissions by 30% by 2030 in line with the Paris Agreement focusing. The country focused on a number of sectors including transportation.

Todd Neeley can be reached at todd.neeley@dtn.com

Follow him on Twitter @toddneeleyDTN



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