US ethanol, subsidised as a homegrown alternative to foreign oil, is being exported in record volumes.
The exports stand in contrast to the goals of US biofuels policy, which seeks to reduce dependence on imported fossil fuels in part by offering tax credits to companies that blend ethanol with petrol.
The rising tide of outbound shipments will be central to the debate over the blender’s [tax] credit, which is set to expire at the end of the year. Exporters’ use of that credit is already drawing objections in Europe.
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