In 2007 the USA Federal Government passed the US Renewable Fuel Standard which required ethanol blending with domestic oil in large quantities with frequent increases in amounts of ethanol being used. The bill was passed to reduce the USA carbon footprint and increase the amount of renewable biofuel being used in the USA.
Under the Trump administrations, they have been far less supportive of the biomass blending mandate, granting biofuel waivers to major industry players and allowing the trading of biomass credits to develop.
Despite the less than active support for biofuel domestically Trump has been pushing his trade negotiators to get big concessions from his Chinese counterparts by asking them to lower their tariffs on biomass in particular biofuel.
China's ethanol demand is expected to grow nearly sevenfold as the country prepares to introduce E10 fuel throughout the country next year. E10 fuel is a fuel using 10% ethanol and 90% petrol.
U.S. trade negotiators hope to convince Beijing to lower tariffs on ethanol, putting American farmers in a position to capitalize on rising demand for the corn-based biofuel in China.
The US forestry industry has been pushing Trump to change federal policy to consider biomass (Wood Pellets) burning a renewable energy source, which could give it some of the benefits that wind, solar and similar energy forms enjoy. Companies often use sawdust and other waste to fuel operations, or turn the waste into pellets and sell them to other companies. So far Trump has not responded.
James Grainger of EcoCrops International commented that Trump's support was less than 100%, in particular, his support for the US coal industry.
www.ecocropsinternational.com
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