Japan’s push toward lower-carbon fuels and the Philippines’ growing use of higher ethanol blends could create new opportunities for Nebraska ethanol producers, according to agriculture and industry leaders traveling on Nebraska Gov. Jim Pillen’s trade mission to Asia.
The delegation, which included representatives from agriculture, ethanol, livestock and agribusiness organizations, spent the week meeting with government officials, fuel customers and importers in Japan and the Philippines.
While Nebraska products ranging from beef and pork to wheat and manufactured goods were part of the discussion, ethanol emerged as one of the strongest areas for potential growth.
Mark McHargue, president of Nebraska Farm Bureau, said conversations about renewable fuel stood out during the trip.
“I think the most exciting meeting for me was yesterday we had an ethanol roundtable,” McHargue said in a phone interview from the Philippines. “One of the buyers voluntarily is putting 20% ethanol in their gasoline and they have a mandated 10%. It’s a pretty exciting market.”
McHargue said Nebraska is well positioned to capitalize on growing international demand for renewable fuels.
“As we think about ag in Nebraska, we are just so positioned to continue to grow our ethanol markets,” he said. “And we certainly need to do that.”
Japan’s focus on reducing carbon emissions may provide a particular advantage for Nebraska ethanol producers. McHargue said buyers showed significant interest when they learned about the state’s growing low-carbon ethanol production capacity.
Nebraska ethanol plants are increasingly utilizing carbon capture technology, improving carbon intensity scores and creating opportunities in markets that prioritize lower-emission fuels.
“It was fun to tell that story,” McHargue said. “The fact that we are producing some of the lowest carbon-intensity ethanol in the country, you could just see it on their faces. They just lit up because that’s something they certainly want in Japan.”
Chief Industries President DJ Eihusen, who operates ethanol plants in Hastings and Lexington, said high fuel prices were a common topic during discussions in the Philippines.
“One of the things we expressed upon was high fuel prices,” Eihusen said. “Certainly, it’s our belief that ethanol can help relieve some of that pressure.”
Eihusen said the Philippines has already moved beyond a simple E10 discussion. While the country mandates E10 fuel, some suppliers are voluntarily moving to higher blends.
“They skipped right from E10 and bypassed E15 and went straight to E20,” Eihusen told the Rural Radio Network. “That’s quite an injection.”
Eihusen said growth in both Japan and the Philippines could create additional demand for U.S. ethanol supplies.
“When other markets, like Japan, start to take gallons, there are additional gallons from the U.S. supply that could fill that need,” he said. “Pretty encouraging all in all.”
For McHargue, the trip reinforced the importance of maintaining export relationships across the globe.
“There’s a reason we need to be in line and knocking on the doors because, if we’re not, other countries are going to take our place,” he said.
He added that stronger export markets ultimately benefit farmers back home.
“They are real dollars,” McHargue said. “Sometimes it’s hard to see that because we get a certain price posted at the co-op or wherever you sell your corn. But we know if we have a few percent more demand, that market responds.”
As global markets continue looking for renewable fuel supplies and lower-carbon energy sources, Nebraska’s agriculture leaders believe ethanol could become an increasingly important part of the state’s export portfolio.
“Why not?” McHargue said. “If you’re going to be buying ethanol, why not buy it from Nebraska?”
