Ethanol
As a renewable fuel, ethanol is playing a major and increasing role in providing solutions for cleaner transportation.
In a market that has seen many quick entrances (and indeed exits) by various traders, Vitol is well established. We began trading ethanol in 2001 and have consolidated our position through strong, long-term relationships.
Sourced mainly from corn and sugar cane, ethanol is enjoying significant growth, driven by environmental demands and indeed legislation. In the US, for example, it was mandated that ethanol should contribute 4bn gallons in 2006; this has risen to 9bn in 2009 and will be almost 14bn gallons by 2012.
Ethanol is also at the centre of energy policy worldwide, and Vitol is well structured to react to the key markets. We have active trading operations in Houston, Kansas City, Rio de Janeiro, Singapore and also in Europe. As major players in every major fuel market, we are well qualified to integrate ethanol into our mainstream capabilities and systems. For example, we are one of the very few ethanol suppliers with expertise in product hedging.
As ethanol’s importance grows, so Vitol is recognising this trend with significant investment. We are developing an ethanol blending programme; a new terminal project in the US will come on-line in the next two to three years; and we will be exploring and assessing opportunities in supply, distribution and long-term storage.
• Together with sugar cane, corn provides nearly 70% of the world’s ethanol production.