Fuel ethanol production in United States

U.S. fuel ethanol production totaled 15.4 billion gallons in 2022, up 2.7% year-over-year, according to data from the Energy Information Administration.

After registering 15.8 billion gallons in 2019, U.S. fuel ethanol production fell to 13.8 billion gallons in 2020 and increased the following year to 15 billion gallons.

But 2022 production was below its all-time high reached in 2018, when it was pegged at 16.1 billion.

According to the company, Lake Area Corn Processors during the past fiscal year, Canada, India and South Korea were the top destinations for ethanol exports from the United States.

Ethanol exports for the 2022 period have increased significantly compared to the same period in 2021.

In general, ethanol export demand is more unpredictable than domestic demand and tends to fluctuate over time as it is subject to monetary and political forces in other nations.

Fuel ethanol production

Tariffs imposed by Brazil and China on ethanol imported from the United States have had a negative effect on export demand from these markets. The tariffs imposed by China remain unchanged.

In March 2022, Brazil suspended its tariff until the end of 2022 on ethanol imported from the United States following a 10% tariff reduction in November 2021.

Then, in February 2023, Brazil reinstated the tariff at a 16% rate through 2023, increasing to 18% in 2024.

Lake Area Corn Processors believes that these tariffs are likely to result in no ethanol exports to Brazil in 2023 or 2024.

Typically, ethanol is blended with gasoline before being sold to the end consumer.

Therefore, the main ethanol buyers are fuel blenders that blend ethanol with gasoline.


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