September 18, 2023
BY Erin Krueger
The European Commission on Sept. 14 announced it will implement retroactive surveillance measures on imports of ethanol from several countries, including the U.S. The surveillance measures are to remain in effect for three years.
Information published in the Official Journal of the European Union explains that imports of fuel ethanol have increased recently in significant amounts. Imports of ethanol for all purposes from all origins increased by nearly 80 percent between 2021 and 2022. Fuel ethanol imports were up 45 percent in 2022 when compared to the prior year. The top suppliers of ethanol to the EU are Brazil, the U.S., the U.K. and Peru.
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According to the European Commission, the EU market appears to be an attractive destination for fuel ethanol imports due to its high prices. The commission estimates that import prices from Brazil and the U.S. are more than 15 percent lower than EU prices.
The recent increase in fuel ethanol imports has coincided with a 10 percent decrease in the market share of the EU industry. The European Commission said the ratio of imports as compared to EU production increased from 21 percent in 2021 to 39 percent in 2022. In addition to the production decrease, a survey of EU ethanol producers indicates that capacity utilization has fallen by 9 percent, with union sales volumes down 6 percent, inventories down 15 percent, investment down 44 percent and profitability down 57 percent.
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ePURE, the European renewable ethanol association, is applauding the European Commission for its action. “The EU renewable ethanol industry is a strategic sector for Europe, with a significant role in tackling climate change and de-fossilizing the transport sector, boosting energy independence and bolstering food and feed security,” said David Carpintero, director general of ePURE. “This Commission action is reassuring news for the sector as monthly monitoring will allow a close statistical picture of volumes of fuel ethanol imports and help the EU to act quickly to respond to a threat of serious injury for the EU industry, if needed.”
“Surveillance is a first step to collect information and monitor the evolution of imports,” he added. “The EU renewable ethanol industry stands ready to act to prevent further injury to preserve its sector and jobs throughout the EU.”
A full copy of the European Commission’s Sept. 14 announcement is available on Official Journal of the European Union website.
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