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In January 2019, Colombia’s Ministry of Commerce, Industry and Tourism initiated a countervailing duty (CVD) investigation on U.S. ethanol at the behest of the National Biofuels Producers Association. The preliminary decision of the CVD case imposed a preliminary 4-month ad valorem duty of 9.36 percent on U.S. ethanol imports, beginning May 9, 2019. Ethanol production is expected to reach 490 million liters in 2019, 4 percent higher than 2018, as a result of normal weather conditions, a higher blend mandate (E10) coupled with larger fuel pool, and more protection from U.S. ethanol imports. Imports from U.S. remain higher than past years but are expected to slow given the temporary duty, possible price regulation on imports, and the likeliho.
Indonesia’s palm-based biodiesel industry enjoyed a large expansion in 2018 with the beginning of nationwide expansion of B20 to the non-public (Non-PSO) transport sector and a sharp jump in overseas demand. Domestic consumption is set for another large year-over-year increase in 2019 largely due to further expansion of B20 to the Non-PSO transport sector. Exports are forecast to remain elevated near 1.8 billion liters based on continued demand from the EU and China. Indonesia’s fuel ethanol consumption remains virtually zero since 2010 due to lack of financial support and a mandate that has not been enforced.
India’s average blending rate for ethanol in gasoline is expected to reach a record 5.8 percent, up from a previous record 4.1 percent last year and considerably higher than historical levels. A surplus sugar season coupled with a stronger incentive to convert excess sugar to ethanol helps oil-marketing companies (OMCs) procure upwards of 2.4 billion liters this year. An upsurge in demand for the ethanol blending program (EBP) and consequent tight supply for industrial and potable use will encourage ethanol imports (mostly denatured) to grow 19 percent year-over-year to a record 750 million liters. The biodiesel market remains nearly nonexistent due to limited access to feedstock limited production capacity, a rudimentary supply chain, and
In December 2018, Canada released a highly anticipated document outlining the beginnings of a nationwide framework for switching from a volumetric to a carbon intensity approach for renewable fuels. In April 2019, the federal carbon pricing backstop was imposed on those provinces not meeting the minimum threshold. Five provinces are currently challenging the federal carbon pricing framework in court. Along with ethanol and biodiesel, wood pellets are included in this report.


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