Kentucky Corn Laid the Foundation for U.S.-Vietnam Ethanol MOU

U.S. ethanol leaders recently signed a Memorandum of Understanding (MOU) with Petrolimex, the largest petroleum distributer in Vietnam. The Renewable Fuels Association (RFA), U.S. Grains Council (USGC), and Growth Energy gathered in Washington D.C. to formalize the agreement.

The MOU recognizes the economic, environmental, human health, and energy benefits of increasing the use of ethanol in transportation fuel blends. This MOU also supports Petrolimex’s alignment with the Vietnamese government’s recent directive to promote greater ethanol usage.

Kentucky Corn played a pivotal role in laying the foundation for this partnership. In October 2023, Kentucky Corn, alongside the USGC, welcomed 15 key ethanol stakeholders and policymakers from Vietnam to Hopkinsville, KY, many of whom would later attend the MOU signing in Washington.

The Vietnamese delegation was eager to learn about the environmental and economic benefits of bioethanol blending, and Kentucky Corn provided them with insight into the U.S. bioethanol supply chain.

The delegation visited Brandon Hunt’s fifth-generation family farm, where they saw firsthand the role sustainable farming practices, such as the use of cover crops, play in ethanol production.

“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.”

“I was also pleased to accept the role of showing this group how our farming practices enable them to achieve decarbonization objectives for their fuel. A second important message was to demonstrate American farmers’ reliability as a corn producer for ethanol feedstocks. Ultimately, trade relationships depend on personal friendships and mutual trust. There is no better place to build those bonds than walking a cornfield and riding a tractor,” Hunt said.

They also met with local farming leaders, followed by a tour of H&R Agri-Power’s equipment repair bay. Multi-generational farming families shared their experiences about how producers have successfully increased output while maintaining environmentally friendly practices.

The delegation continued their visit with an in-depth exploration of bioethanol production at Commonwealth Agri-Energy, where they observed raw material deliveries, quality control labs, and co-product storage and handling, including DDGS and corn oil.