10 November 2011 13:00 [Source: ICIS news]
BARCELONA (ICIS)--The ?xml:namespace>
Although US exports of ethanol have more than doubled to an estimated 865m gallons/year in 2011 from 400m gallons/year in 2010, regulations such as the European renewable energy directive (RED) and fuel quality directive (FQD) could dampen exports, said Max Thomasson, global manager of CHS Renewable Fuels.
However, it is evident that the number of US ethanol plants certified by the International Sustainability and Carbon Certification (ISCC) - a European-based voluntary scheme which certifies biomass and bioenergy as sustainable in accordance with the RED - is growing, with around 12 plants approved.
This means around 1.19bn gallons of sustainable material are available for export, Thomasson said at the FO Licht World Ethanol and Biofuels conference.
Another hurdle the industry faces in the US is achieving greenhouse gas savings of 50% by 2017. Thomasson said
Increasing cellulosic production of ethanol, however, would demand a significant investment and expansion of cellulosic ethanol capacities. However, the investment community remains wary of ethanol due to its volatile margins and feedstock prices.
More fluid market conditions could attract investors but the removal of the US Volumetric Ethanol and Excise Tax Credit (VEETC) - a policy which subsidises ethanol production in the US - and the amendment to import tariffs on
This is due to the possibility that fewer
Thomasson believes that this will result in the need for European and Brazilian ethanol prices to increase in order to attract imports from the
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