China is planning to roll out the use of ethanol in its gasoline by 2020 pushing for an E10 blend. They have yet to make a formal announcement however. South Dakota Corn Growers President Troy Knecht, who sits on the Board of the American Coalition for Ethanol, says its positive China is looking at addressing their pollution problems with a clean fuel.
He says it remains to be seen what effect China’s move will have on U.S. ethanol exports. Knecht thinks China’s move to produce their own ethanol is an attempt to draw down their own large corn supplies.
Knecht says if China formally moves forward to become an ethanol producer it’s a sign they accept science and that could eventually benefit U.S. agriculture.
China has built up state corn reserves estimated at 200 million metric tons, equivalent to a year of demand in that country.
