Regulatory reform to offer opportunities for US ethanol – RFA

SAN DIEGO (ICIS)–US President Donald Trump’s interest in regulatory reform could provide the US ethanol industry with greater opportunities for growth and expansion, according to a senior industry figure at the 2017 National Ethanol Conference (NEC) in San Diego on Tuesday.

In his state of the industry speech, Renewable Fuels Association (RFA) president and CEO Bob Dinneen said that Trump had shown “unwavering” support for the ethanol industry and the Renewable Fuels Standard (RFS), both during his election campaign and in his key leadership appointments.

Trump’s interest in significant regulatory reform at the Environmental Protection Agency (EPA) could offer major opportunities for the US ethanol industry, and could “finally bring fuel regulations into the 21st century”, Dinneen added.

Examples included revising volatility restrictions on higher blends of ethanol, simplifying the process to certify and register new fuels, and offering equal incentives for competing technologies, including alternative fuels.

Although he described the political climate as “less than welcoming” to corn-based ethanol, Dinneen said that the industry had entered the era of the new US political administration from a position of strength.

“Not only do we have a strong base of support throughout the Congress, but we have a resident at 1600 Pennsylvania Avenue who understands the value of ethanol and who is committed to an ‘America First’ energy policy,” Dinneen said.

Dinneen noted that 2016 had marked the fourth consecutive year of profitability for ethanol, as it had been a record year for production, net exports, domestic demand and E15 sales and infrastructure build-out.

However, tensions with the US oil industry remain, according to Dinneen.

“Our ‘friends’ in the oil industry continue to target the RFS with ads designed to vilify ethanol even as many oil companies produce ethanol themselves and all of them have recognised ethanol has benefits and is here to stay,” Dinneen said.

“We will continue to fight those attacks, and defend both the molecule and the policy with passion and prejudice. But we should recognise that the oil industry is no longer monolithic with regard to renewable fuels, and we can best succeed by building new partnerships with those refiners who share our vision of a growing ethanol market.”

Looking ahead, Dinneen outlined the priorities of the RFA, which included focusing on expanding existing markets and opening new markets for ethanol, both in the US and abroad.

“We must continue adding value to our plants and pursuing technologies that will make us more efficient and profitable,” Dinneen added.

NEC 2017 runs from 20-22 February in San Diego.