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Trade Dispute Affecting Midwest Ethanol Production

Ethanol plants are expected to scale back production drastically in coming weeks

Fuel pump

Officials with POET Biorefining in Alexandria, IN, are monitoring the ongoing trade dispute between the United States and China, which has resulted in significant tariffs on U.S. ethanol shipments to that country, according to The Herald Bulletin.

A report from Radio Iowa says ethanol plants in that state and elsewhere in the Midwest are expected to scale back production drastically in the coming weeks. According to the report, one executive cites oversupply and the trade dispute with China as the two main reasons for the draw-down in production.

The Environmental Protection Agency’s Renewable Fuel Standard (RFS) program, which has provided small refinery exemptions to Exxon, Shell, Mobil and other oil companies, has also contributed to a decline in demand.

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