In 2024, the U.S. Grains Council played a pivotal role in promoting U.S. ethanol exports to the Philippines by collaborating with the Government of the Philippines to support the implementation of a new discretionary E20 blend policy, allowing retailers to sell gasoline with up to 20% ethanol. This policy shift offers numerous benefits to the Philippines’ consumer and fuel industry, including reduced fuel and input costs, improved air quality, and lower greenhouse gas (GHG) emissions.
As part of its ongoing efforts, the Council, along with the Illinois Corn Growers Association, hosted a delegation of Filipino officials to explore the U.S. ethanol value chain. The mission deepened understanding of U.S. ethanol production, its sustainability benefits, and reinforced U.S.-Philippines climate cooperation. Moreover, the Council designed and executed a six-month advisory program to the country’s National Biofuels Board, which helped design and promote the country’s National Fuel Standard for E20 gasoline, a prerequisite for the E20 discretionary policy.
The shift to E20 will require infrastructure updates in the Philippines and may face resistance from small retailers and consumers. Despite challenges, this transition represents a major opportunity for U.S. ethanol exports, as the Philippines remains heavily reliant on imports.
The Philippines has long been a key customer of U.S. ethanol since the country instituted an E5 mandate in 2009, galvanizing both its local production and demand for imported U.S. ethanol. This mutually beneficial trade relationship forged through ethanol stimulates further investment in the Philippines’ domestic ethanol industry, as U.S. ethanol imports help lower the average ethanol and gasoline prices in the country.
In 2023, U.S. ethanol exports to the Philippines faced significant competition from Brazil and transshipment flows, resulting in a 25 percent decrease in direct export volumes compared to 2022. The Council’s programming in 2024 aimed to address increasing Brazilian competition in the market while finalizing and launching the voluntary E20 policy.
The Philippines in 2024 imported 66.68 million gallons of U.S. ethanol, accounting for approximately 70 percent of its total foreign fuel ethanol demand and highlighting the market preference for U.S. ethanol.
The Council’s investment of $135,000 MAP funds generated $27.5 million in additional sales compared to 2022, creating a ROI of $204 for every $1 of MAP funds invested.
