China recently implemented a new E10 mandate across the country. Could it create more demand corn and ethanol produced in the U.S?
Iowa State University?s Center for Agriculture and Rural Development looked at China?s new nationwide ethanol mandate (NEA 2017) in their fall ag policy review. It expands the mandatory use of E10 fuel from 11 trial provinces to the entire country by 2020.
China consumes 40 billion gallons of gasoline and one billion gallons of ethanol. CARD says ?projections show that by 2020 gasoline consumption will reach 46 billion gallons (USDA 2017). Meeting the national E10 mandate would require an extra 3.6 billion gallons of ethanol, putting China ahead of the European Union to become the world?s third-largest ethanol consumer?.
Read CARD’s full report here.
