USDA Unveils Plan to Expand US Biofuel Exports and Open New Markets

The US Department of Agriculture (USDA) has released the American Biofuels Trade Outlook, a four-pillar strategy aimed at expanding international demand for US biofuels, increasing ethanol blending and addressing trade barriers affecting crop-based fuels.

Released on September 16, 2026, the plan follows a record year for US ethanol exports. The USDA said the United States shipped 2.2 billion gallons of ethanol in 2025, valued at $4.7 billion, marking the highest export volume and value recorded for US ethanol.

Agriculture Secretary Brooke Rollins said the export milestone reflects investment and innovation in American agriculture, and that the American Biofuel Trade Outlook outlines the USDA’s exact plan to ensure that success continues.

Four pillars of the US biofuel trade strategy

The USDA’s strategy focuses on increasing on-road ethanol blending, reducing restrictions on crop-based biofuels, expanding into untapped markets and increasing engagement with international organisations.

Under the first pillar, the USDA plans to identify new markets in Latin America and Southeast Asia that could adopt E10 gasoline blending. It also intends to work with around 20 markets that already have E10 policies to address implementation challenges and maintain access to existing export markets.

The second pillar targets restrictions on crop-based biofuels. The USDA said some economies, including the European Union, restrict crop-based biofuels from supplying part of their transportation fuel demand. The department plans to engage with trading partners on these restrictions and seek wider market access for US biofuels.

India, Mexico, Pakistan and Nigeria targeted

The third pillar focuses on developing new markets. The USDA plans to encourage Mexico to increase ethanol blending, pursue opportunities in emerging Asian markets and deepen engagement with India.

The strategy also identifies Pakistan and Nigeria as potential areas for expanded market development. The USDA plans to use anticipated increases in market development funding to support new marketing initiatives in Pakistan and an ethanol pilot programme in Nigeria.

USDA to engage IMO and ICAO on biofuel rules

The fourth pillar covers international standard-setting and regulatory frameworks. The USDA plans continued engagement with bodies including the International Civil Aviation Organization (ICAO) and the International Maritime Organization (IMO) to support the inclusion and competitiveness of US biofuels in international aviation and maritime fuel frameworks.

The strategy also seeks to address regulatory approaches in other countries that the USDA believes could restrict market access for American biofuels.

Under Secretary Luke Lindberg said USDA is focused on increasing ethanol blending around the world and making sure US farmers win with every new trade deal.

Export growth driven by international demand

According to USDA’s Foreign Agricultural Service, the growth in US ethanol exports during 2025 was supported by stronger demand from markets including Canada, the European Union, the United Kingdom, India, Colombia and the Philippines. USDA data also show that US ethanol exports reached 2.13 billion gallons during the 2024/25 corn marketing year, with exports continuing to grow into 2025.

The USDA’s Grain Transportation Report reported that 2025 ethanol exports were approximately 2.18 billion gallons, up 13% from the previous year and 52% above the five-year average. Exports accounted for about 15% of total US ethanol demand during the year.

The expansion of overseas markets comes as the US ethanol industry continues to seek additional demand at home. Proposals to enable year-round sales of gasoline containing up to 15% ethanol, known as E15, remain part of the broader US biofuel policy debate.

The American Biofuels Trade Outlook therefore places international market development alongside domestic blending policy as the USDA seeks to expand demand for US ethanol and other crop-based biofuels.