The EU’s repeal of antidumping duties on imports of US ethanol in mid-May could pave the way for increased shipments to Europe of the biofuel. European ethanol producers have raised concerns over the environmental impact of increased imports, but deeper questions over the sustainability of biofuels remain unanswered. The European ethanol association, ePURE, voiced concerns over the harmful impact of the decision on European ethanol producers, especially as other destinations for US ethanol exports – including Brazil, China, Peru and Colombia – either have measures in place against US imports, or are considering them. Some in the market suggested additional shipments to Europe from the US would be limited in any case. Although the removal of the Eur62.30/mt tariff is a significant cost reduction, the economics to ship ethanol on the route have been marginal. In addition, Europe’s requirements for sustainability certification and a minimum of 50% greenhouse gas savings limit the amount of US product that is eligible for use in the EU. Weaker forward prices in the European ethanol market, combined with logistical constraints, could also be major hurdles to further imports. Growing share of transport fuel Biofuels are seen as part of a transition to a low-carbon… continue reading
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Source: CTRM Center