Mexico

Summary of national biofuels policy and strategy - updated 20th August 2008

Biofuels substitution targets

Targets: none set 

Note: Ley de Promoccon y Desarrollo de los Bioenergeticos (2008) sets out objectives for biofuels in Mexico. A Bioenergy Commissión has been established to set up regulations and support mechanisms.

National policy and trends in biofuels crop development

Development of a national biofuels strategy has been contentious given potential conflicts between food and fuel supplies.

Mexican biofuels policy focuses on: 

1. emphasising biofuels production from a variety of sources including sugar cane and corn as crop sources but also waste products and non-food crops;the use of biofuels to help rural development;

2. restricting use of corn to ensure domestic food supply is assured; 

3. encouraging increased sugar cane production (through the Mexican Sugar and Ethanol Program) to allow its use as a bioenergy feedstock.

Currently, without a mandatory level of biofuel substitution, the market opportunities for biofuels producers are limited in Mexico. The national strategy, of using corn and sugar cane, inevitable leads to an ethanol rather than biodiesel focus. The NAFTA agreement allows Mexican ethanol free access to the USA making this an attractive market. 

Sources:  

 F.O. Lichts World Ethanol and Biofuels report - www.agra-net.com 

USDA Foreign Agricultural Service - http://www.fas.usda.gov/gainfiles/200706/146291366.pdf