Representatives from the U.S. Grains Council (USGC) and the U.S. ethanol industry embarked on an exploratory mission to China aimed at gaining critical insights into the country's ethanol market and policy landscape. The delegation sought to foster collaboration between U.S. and Chinese stakeholders while assessing the Council's future ethanol strategy in the region.
In 2017, China announced plans for a nationwide 10 percent ethanol blending (E10) mandate by 2020. However, the initiative was unofficially suspended in late 2020, leading to decreased blending rates in pilot regions. The domestic ethanol industry has faced challenges such as fluctuating corn prices, weak enforcement of mandates, and shifting priorities toward renewable electricity and electric vehicles. Should China fully implement a national E10 program, it would require approximately five billion gallons of fuel ethanol, indicating significant market potential.
"China’s domestic ethanol industry, coupled with supportive policies, can play a key role in global biofuel expansion. By fostering stronger ties and cooperation, both countries can benefit from enhanced energy security and sustainability," said Walter Wendland, CEO of Ringneck Energy and member of the USGC Ethanol Advisory Team (A-Team). "As the U.S. ethanol industry continues to grow, a well-developed ethanol market in China will help pave the way for future win-win opportunities."
Wendland and USGC Director of Global Programs Stella Qian joined Council staff based in Beijing to engage with various industry, academic, and governmental stakeholders. The discussions aimed to deepen understanding of China’s ethanol market, technological advancements, and ongoing bilateral collaboration in renewable energy and biofuels. They also addressed challenges within the local ethanol industry and explored future opportunities for partnership.
A highlight of the mission was a meeting with the National Energy Administration (NEA), China’s primary policymaker for renewable energy and biofuels sectors. During the meeting, the USGC team shared updates on recent advancements in the U.S. ethanol industry, including supportive policies under the Inflation Reduction Act and the growing global focus on biofuels and sustainable aviation fuel (SAF).
"One of our main goals on this program was emphasizing the benefits of ethanol in rural development and its potential to play a critical role in decarbonizing both the transportation and aviation sectors," Qian said. "The NEA acknowledged these benefits during our meeting and expressed its interest in revitalizing the Sino-U.S. Biofuels Forum—a positive step that could further bilateral engagement on biofuels and contribute to shared climate goals."
The USGC's exploratory mission underscores the potential for renewed collaboration between the United States and China in the biofuels sector. As both nations strive to meet ambitious climate objectives, enhanced cooperation could drive significant advancements in renewable energy and global sustainability efforts.
