Changes proposed to Mexico’s energy laws under President Claudia Sheinbaum could open up new opportunities for ethanol exports from the United States, according to a report by the US government, reports bnamericas.
In a report released on January 5, the US Department of Agriculture said the new Mexican administration has signalled a strong push toward renewable energy and is looking to expand the production and use of biofuels in the country.
The report said Mexico’s energy ministry is expected to outline targets and possible pathways for biofuel production and consumption in sector plans scheduled to be released in 2026.
It noted that these policy efforts, together with initiatives related to sustainable aviation fuel and other biomass-based fuels, could increase demand for US ethanol as well as sorghum and other raw materials.
Mexico is also considering changes to an existing technical standard that limits ethanol blending in petrol to 5.8 per cent and currently does not allow ethanol blending in major cities such as Mexico City, Guadalajara and Monterrey.
According to the report, Mexico produces only a small volume of ethanol, mainly from sugarcane, and depends on imports to meet more than 90 per cent of its ethanol consumption.
The report added that the use of fuel ethanol in Mexico remains low because of regulatory restrictions and the limited scale of domestic ethanol production.
