North American biofuels are wrestling with uncertainty due to tariff talks

An energy expert tells Reuters he expects the North American biofuels industry to contract if the uncertainty of tariffs continues to drag on.

Paul Niznik is the Director of Energy at Capstone LLC, he says that while he expects the industry to contract, it will not disappear entirely. He says that tariff unknowns have left little room for prices to catch up, but tariffs are not the industry’s only concerns.

A lack of 45Z tax credit guidance continues to impact the industry.

Brazil’s ethanol industry also faces some tough choices as tariffs loom.

To avoid reciprocal duties from teh U.S., Brazil would have to lower its 18% duty on American ethanol, and while ithis would allow Brazil to keep the U.S. as a key export market, opening itself up to U.S. ethanol would hurt its local industry.

Brazil shipped nearly 300 million liters of ethanol to the U.S. last year.

Related Stories
Spring Fieldwork Expands While Weather Challenges Persist Nationwide
Natalie Roy from AgriSafe Network talks about women’s role in agriculture and the increasing need to address their unique health and safety needs as they form a larger part of the workforce.
In honor of Oral Cancer Awareness Month, Dr. Jeffrey Gold shares how disparities in dental care impact rural Americans and why early detection is important.
While the Farm Bill is top of mind right now, it is far from the only issue getting attention in Washington.
Lewie Pugh, with the Owner-Operator Independent Drivers Association, discusses EPA DEF system changes and what they mean for the supply chain and fuel costs.
JBS says the plant is now operating at full capacity as plant workers return to work.