The US is on track to export a record amount of fuel ethanol for the second year in a row in 2025, driven by growing international demand.
This growing market for exports is supporting
increased US fuel ethanol production, even as domestic consumption stagnates,
according to US Energy Information Administration (EIA)
report.
Fuel ethanol is a
renewable fuel that is commonly blended with gasoline and is made by fermenting
sugar from biomass, typically corn in the US.
The US is the largest
global producer and exporter of fuel ethanol.
US fuel ethanol
exports are on track to set new records
In the first seven months of 2025, US fuel ethanol exports averaged 138,000
barrels per day (b/d)—the highest January through July average in EIA data, which goes back to 2010, and 9 per cent
more than 2024’s annual record of fuel ethanol exports.
Growing international
demand and a slight increase in production capacity are driving the
high fuel ethanol exports this year.
With growing exports
and flat consumption, exports are making up an increasing share of US fuel
ethanol production.
Through the first
seven months of 2025, 13 per cent of domestic ethanol production was exported,
compared with a record 12 per cent in 2024 and a pre-pandemic high of 11 per
cent in 2018.
Most of the
increase in fuel ethanol exports has gone to the Netherlands
Increased fuel ethanol
exports to the Netherlands accounted for most of the growth from 2024 through
July 2025, likely reflecting growing demand in Europe.
Some of Europe’s
busiest trade ports are in the Netherlands.
Vortexa tanker
tracking data indicate that as the Netherlands has increased fuel ethanol
imports from the US, it has also increased exports to the United Kingdom,
France, and Ireland.
In addition, India,
the United Kingdom, and Canada, all of which have blend mandates, continue to
import substantial volumes of fuel ethanol, with Canada remaining the top
destination.
Rising ethanol exports are driving domestic production growth
The expansion of the fuel ethanol export market has led to a proportional
increase in US fuel ethanol production.
This growth has pushed
domestic production beyond the pre-pandemic peak in 2018, despite lower
domestic consumption.
US fuel ethanol
consumption remains below pre-pandemic levels because of lower gasoline
consumption.
Fuel ethanol
consumption tracks closely with motor gasoline consumption because nearly all
motor gasoline sold in the US is about 10 per cent ethanol by volume (E10) and
virtually all fuel ethanol is used for blending with gasoline.
In EIA latest Short-Term Energy Outlook, EIA forecast ethanol net exports and production to remain near record highs in 2026 due to expected record corn production, in addition to the same factors driving production and exports this year. -
EIA forecast consumption to remain below pre-pandemic levels as motor gasoline consumption remains flat.OGN/TradeArabia News Service
