US ethanol industry pushes cooperation on cellulosic mandate

23 February 2012 21:37  [Source: ICIS news]

ORLANDO, Florida (ICIS)--The head of a US biofuel trade group said on Thursday that ethanol producers seek to cooperate with the oil industry about mandates for blending cellulosic ethanol into gasoline.

Recently, the American Fuel & Petrochemical Manufacturers (AFPM), the American Petroleum Institute (API), and the Western States Petroleum Association have asked the Environmental Protection Agency (EPA) to retroactively waive the 2011 cellulosic ethanol blending mandate under the Renewable Fuel Standard (RFS).

They made the request because no cellulosic ethanol was produced that year, according to figures they cited from the EPA.

Advanced Biofuels Association president Michael McAdams said the request sends a negative message to the ethanol industry’s investors.

He made his comments in a panel discussion at the National Ethanol Conference in Orlando, Florida.

“We are willing to work with the API on the RFS,” McAdams said.

API executive vice president of government affairs Marty Durbin acknowledged that there are plenty of discussions to have on the RFS, and it is something that the oil group should work together on with the ethanol industry.

Participants on the panel said the industry needs to come together on a policy with the government to help bring advanced biofuels to the market place.

McAdams said if there is no policy in place, the market may look to buy renewable fuels from outside of the US.

The National Ethanol Conference in Orlando, Florida, runs from 22-24 February.


By: Brian Balboa
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