November 1, 2000

The Renewable Fuels Association (RFA) has urged Mexico to replace MTBE with ethanol in their gasoline, echoing a call from the mayor of Mexico City. A recent government study found dangerously high levels of MTBE contamination in over 80% of the underground water near Mexican City gasoline stations. RFA President Eric Vaughn sent letters to Mexico City Mayor Rosario Robles and Mexican Ambassador to the U.S. Jesus F. Reyes-Heroles offering the assistance and knowledge of the U.S. ethanol industry in expediting Mexico's switch from toxic MTBE to safe, renewable ethanol.

"Mexico need not be held hostage by the international chemical cartel that produces MTBE. Mexico need not sacrifice clean water for clean air. And Mexico can absolutely eliminate its use of MTBE – today," the letter said.

"There is an alternative to MTBE. Ethanol is a renewable, clean-burning and completely biodegradable oxygenate that will reduce emissions as effectively if not better than MTBE without jeopardizing water supplies," Vaughn's letter added.

Like the United States, he said, "Mexico is careening toward an energy crisis. Natural gas supplies are falling. Crude oil production is stagnant because refining capacity is running at nearly 100 percent. To supplement your gasoline supplies, Pemex imports approximately 80,000 bbl/d of MTBE. Your nation, like ours, is in desperate need of a domestic energy partner that can provide clean new supplies to meet increasing demand. Ethanol is the answer to your energy needs."

At the same time, Mexican farmers are being "choked by rising stocks of surplus sugar." The world sugar market is saturated, domestic consumption is falling, and new value-added markets for sugar cane are desperately needed. Brazil has led the world in ethanol production from sugar cane, providing compelling testimony to the economic stimulus that can be achieved by processing surplus sugar into value-added ethanol. "Ethanol is the answer for your sugar growers," Vaughn told the Mexicans.