A team from Mexico recently toured Iowa’s ethanol industry as Mexican retailers prepare for ethanol adoption. Led by the U.S. Grains Council, the effort allowed Mexican gasoline retailers to examine the ethanol refinery process in Iowa from the corn farm to the fuel station. The ethanol market in Mexico represents 1.2 billion gallons in potential demand.
Changes in Mexican law took effect in June 2017 that allow up to an E10 blend outside of three major cities. The team explored stops at fueling stations, a pipeline terminal, a blending facility and an ethanol plant. A Grains Council spokesperson says the mission showed the retailers that with “little to no modifications” they can be ready for ethanol.
U.S. ethanol exports to Mexico have increased by more than 3.5 million gallons between over the last two marketing years, from 27.6 million gallons to 31.1 million. Mexico has purchased more than 25.9 million gallons of U.S. ethanol, equivalent to 9.1 million bushels of corn, so far this marketing year.
