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Kentucky Corn Drives U.S.-Vietnam Ethanol Trade Deal

Kentucky Corn Drives U.S.-Vietnam Ethanol Trade Deal


By Blake Jackson

U.S. ethanol leaders have solidified a partnership with Petrolimex, Vietnam's largest petroleum distributor, through a newly signed Memorandum of Understanding (MOU).

The agreement, formalized by the Renewable Fuels Association (RFA), U.S. Grains Council (USGC), and Growth Energy in Washington D.C., aims to expand ethanol usage in Vietnam's transportation fuel blends.

The MOU emphasizes the economic, environmental, health, and energy security benefits of ethanol, aligning with Vietnam's government directives.

Kentucky Corn played a crucial role in initiating this collaboration, hosting a delegation of Vietnamese ethanol stakeholders and policymakers in Hopkinsville, KY, in October 2023.

The Vietnamese delegation sought to understand the advantages of bioethanol blending, gaining insights into the U.S. bioethanol supply chain. They visited Brandon Hunt’s family farm, witnessing sustainable farming practices firsthand.

“Vietnam’s liquid fuel needs could equate to a three hundred-million-gallon market for U.S. ethanol. This MOU is a major step for that goal. Currently this market utilizes E-5 in some of their grades. Our objective is to help them move to E-10 for all grades,” Hunt said.

“It was clear in our discussions that a primary layer of skepticism is consumer acceptance, so we spent a lot of time talking about how the transition in the American light duty and medium duty fleet progressed seamlessly, and that there is nothing to fear from a blend increase at that level, and beyond. We provided multiple opportunities for this group to observe motorists at fuel retail outlets and convenience stores using E-10 in their cars as a normal, everyday practice.”

The delegation also engaged with local farming leaders and toured H&R Agri-Power’s equipment repair bay, learning about sustainable farming practices. They then visited Commonwealth Agri-Energy, observing bioethanol production processes.

“The U.S. Grains Council does a fantastic job of providing U.S. corn producers a platform to work hand in hand with potential trading partners to culminate a relationship showing how the practices of our industry can mutually benefit both parties,” Hunt said.

Kentucky Corn's efforts in facilitating this initial connection provided the Vietnamese delegation with a comprehensive understanding of U.S. ethanol production, from farm to fuel tank.

Photo Credit: gettyimages-artiemedvedev

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