In late August, representatives from the U.S. Grains Council (USGC) and the U.S. ethanol sector embarked on a trip to China to gain valuable insights into the country’s ethanol market and policy framework. The mission aimed to strengthen collaboration between U.S. and Chinese stakeholders while evaluating the Council’s future ethanol strategy in the region.
China had announced a plan in 2017 for a nationwide 10 percent blending (E10) mandate by 2020, but this was effectively suspended in late 2020, leading to a decline in blending rates in trial areas. The domestic ethanol sector has encountered obstacles such as fluctuating corn prices, inconsistent enforcement of mandates, and a shift in focus toward renewable electricity and electric vehicles. Implementing a national E10 program could require about five billion gallons of fuel ethanol, highlighting significant market potential.
“China’s domestic ethanol industry, supported by favorable policies, could significantly contribute to the global expansion of biofuels. Strengthening ties and cooperation between our countries can enhance energy security and sustainability,” stated Walter Wendland, CEO of Ringneck Energy and a member of the USGC Ethanol Advisory Team. “As the U.S. ethanol sector continues to grow, a well-established ethanol market in China can create future win-win opportunities.”
Wendland and USGC Director of Global Programs Stella Qian, along with Council staff from the Beijing office, engaged with various industry, academic, and governmental stakeholders to deepen their understanding of China’s ethanol market, technological advancements, and ongoing bilateral collaboration in renewable energy and biofuels. Discussions also tackled the challenges facing the local ethanol industry and examined potential partnership opportunities.
A key moment of the mission was a meeting with the National Energy Administration (NEA), the main policymaker for China’s renewable energy and biofuels sectors. During this meeting, the Council shared updates on recent developments in the U.S. ethanol industry, including supportive policies from the Inflation Reduction Act, and the increasing global emphasis on biofuels and sustainable aviation fuel (SAF).
“One of our primary objectives during this mission was to highlight the benefits of ethanol for rural development and its critical role in decarbonizing the transportation and aviation sectors,” said Qian. “The NEA recognized these advantages during our discussions and expressed interest in revitalizing the Sino-U.S. Biofuels Forum, which could further enhance bilateral engagement on biofuels and support our shared climate goals.”
