US Biofuels October 15, 2013 12:00 am US imports of Brazilian sugar cane ethanol could be cut be more than 50% if a draft proposal to reduce next year’s US Biofuel Blending Mandate is approved. The potential policy change has already seen prices drop and the threat of legal action. The import of the sugar-based fuel has been booming thanks to its ‘advanced’ biofuel status under Environmental Protection Agency (EPA) Regulations. The EPA document calls for 2.21 gallons of advanced biofuels. However the higher energy content of biodiesel (from soybean and cooking oils) means suppliers receive 1.5 blending credits for each gallon rather the one credit per gallon for ethanol. As a result 1.92 billion of the credits could be generated from biodiesel leaving little room for Brazilian sugar cane imports. This could spell trouble for Brazil as the US typically takes up to 80% Brazil’s ethanol exports.
