Valero Energy Corporation is planning to expand its business internationally by making the necessary prepartions in exporting ethanol, a compound that helps produce cleaner fuel. Although the company has been in business for six years, this is the first time that it will market its product outside the United States.
San Antonio Business Journal reported that Bill Day, a Valero representative, confirmed the reports that the company is really looking into exporting ethanol. Day added that the company recently purchased an ethanol plant in Evansville, Indiana. This gave Valero the opportunity to transport ethanol using barges rather than by trains.
Ethanol is currently being used as an additive in gasoline as it can help in producing cleaner burning fuels. Reuters reported that the compound ethanol still needs to compete with other gasoline additives such as methyl tertiary butyl ether (MTBE) which is being widely used in other regions especially in the Middle East.
Day said that the decision could increase sales and expand their market globally. Valero is not alone in eyeing the export industry. The Economic Times reported that other companies such as Archer Daniels Midland Co, Marquis Energy LLC and Pacific Ethanol also want to expand their market internationally,
Bill Day declined to give additional information about the plan, but it was reported that Valero plans to export ethanol to Asia and Brazil.
The export industry is one of the viable options for oil refiners in the United States. The downward trend of gasoline prices in the United States forced companies to look for other ways to expand their business.
Valero Energy Corporation currently owns 11 ethanol plants across the United States, giving them the capacity to produce 1.3 billion gallons of ethanol annually. The company started ethanol production six years ago but it only sold domestic grade ethanol at the time.
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