U.S. Grains Council in Japan: A Fruitful Partnership into the Future
Japan is positioning itself as a key player in ethanol adoption, targeting E10 by 2030 and E20 by 2040 for transportation fuels. It’s also pursuing ethanol-based synthetic aviation fuel (SAF) and biochemical applications. A U.S. Grains Council delegation visited Tokyo to reinforce ties, affirming the U.S. can meet Japan’s rising ethanol demand—currently importing 140M gallons annually.
Japan is quickly establishing itself as a leader in the ethanol space across multiple applications. Not only is the island nation starting to implement around on-road ethanol use for transportation, but it is well on its way to establishing synthetic aviation fuel (SAF) and using ethanol in the biochemical space. Japan also happens to be a country with strong diplomatic ties to the United States and a long relationship with the U.S. Grains Council office in Tokyo, prompting stakeholders to look favorably toward American ethanol.
The Council, along with representatives from Growth Energy and the Renewable Fuels Association, visited Tokyo at the end of January to strengthen those ties and engage in dialogue to communicate that the U.S. is equipped and ready to supply the fuel volumes Japan anticipates needing. Hosted by the U.S. Ambassador and Foreign Agricultural Service Japan, the team supported an industry focused roundtable to further the momentum in the country.
The Government of Japan announced last November that it is moving forward with a target to implement blending 10% ethanol (E10) with its fuel for light-duty vehicles by 2030 and a 20% blend (E20) by 2040.
Japan’s gasoline consumption is around 12 billion gallons per year, with a government set annual target volume for fuel ethanol of 218 million gallons. Currently Japan is importing around 140 million gallons of ethanol from the United States, in the form of ethyl tert-butyl ether (ETBE), so this annual goal demonstrates the desire for Japan to continue growing market demand and opportunity.
Long term, Japan will need to determine whether to maintain a share of ETBE in the marketplace or include direct blending to fulfill its E10 and E20 goals. At these consistent blend rates across the entire country, the demand for E10 and E20 is 1.2 billion gallons and 2.4 billion gallons, respectively.
Additionally, Japan is looking to establish its SAF industry and sees a huge potential for capitalizing on the ethanol-to-jet (ETJ) pathway to achieve its goals.
Total demand for SAF from Japan’s aviation industry is 450 million gallons by 2030, from both hydroprocessed esters and fatty acids (HEFA) and ETJ pathways; about half of that supply is projected to come from ETJ. Biochemicals are also in the playbook for the Japanese, with several multi-national companies exploring the value proposition that a versatile commodity like ethanol brings to the table.
The Council’s trip to Japan was key in acknowledging the progress the country has made in the past several years in these ethanol arenas, but more than that, it assured Japan that American-made ethanol will support their energy transition.
Through several private sector meetings, the Ministry of Economy, Trade and Industry, and an industry roundtable with key stakeholders in the transportation and refining industries, the team established continued confidence in America’s ability to provide clean, economical fuel.
It is evident Japan is preparing for implementation of E10 in 2030; this includes putting effective policies in place, supporting the private sector and establishing mechanisms to measure and demonstrate compatibility.
The Council is committed to providing continued support through technical assistance, training and resources to ensure Japan can continue to lead and demonstrate the benefits of ethanol inclusion in its economy well into the future.
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Source : Ethanol Producer Magazine
