US becomes largest ethanol exporter

In Washington, the U.S. Energy Information Administration projected that the US would surpass Brazil as the world’s largest exporter of ethanol, for the first half of 2011. The EIA said that shortages of ethanol and Brazil stemming from harvest conditions and global sugar prices, led to strong imports. The EIA also credited the elimination of a 20 percent import duty on ethanol, and reduced import tariffs on ethane, in the EU. The EIA and other observers have speculated that low-cost US corn ethanol would be exported to Brazil, while low-carbon Brazilian ethanol would be exported to California.