Welcome to Corn Comments, I’m DaNita Murray, Executive Director at South Dakota Corn. We are brought to you by the South Dakota Corn Utilization Council, a volunteer group of farmers who promote corn marketing in this state, the U.S. and around the globe.
Recently, President Claudia Sheinbaum publicly indicated support for opening the biofuel industry in Mexico. This positive development came as several Executive Directors from various corn states were in-country on a U.S. Grains and Bioproducts Council export mission trip.
Currently, the regulatory framework in Mexico prohibits ethanol use as fuel in its top three cities by population—Mexico City, Monterrey and Guadalajara. Mexico City’s population alone is around 20 million consumers. It’s law also limits the maximum blend of ethanol in fuel to 5.8%.
Another significant change is the posture of Pemex, the state-owned petroleum corporation controlled by the government of Mexico. Pemex may be interested in replacing MTBE use with ethanol, likely due to cost and environmental considerations.
While the primary focus of these changes is to bolster sugarcane and sorghum farmers in Mexico, initially Mexico would likely need imports to meet new domestic E10 demand, estimated at approximately 80,000 barrels of ethanol per day.
Welcome to Corn Comments, I’m DaNita Murray, Executive Director at South Dakota Corn. We are brought to you by the South Dakota Corn Utilization Council, a volunteer group of farmers who promote corn marketing in this state, the U.S. and around the globe.
Recently, President Claudia Sheinbaum publicly indicated support for opening the biofuel industry in Mexico. This positive development came as several Executive Directors from various corn states were in-country on a U.S. Grains and Bioproducts Council export mission trip.
Currently, the regulatory framework in Mexico prohibits ethanol use as fuel in its top three cities by population—Mexico City, Monterrey and Guadalajara. Mexico City’s population alone is around 20 million consumers. It’s law also limits the maximum blend of ethanol in fuel to 5.8%.
Another significant change is the posture of Pemex, the state-owned petroleum corporation controlled by the government of Mexico. Pemex may be interested in replacing MTBE use with ethanol, likely due to cost and environmental considerations.
While the primary focus of these changes is to bolster sugarcane and sorghum farmers in Mexico, initially Mexico would likely need imports to meet new domestic E10 demand, estimated at approximately 80,000 barrels of ethanol per day.