On April 17, 2018, it was announced that Japan’s new biofuel policy will allow imports of ethyl tert-butyl ether (ETBE) made from U.S. corn-based ethanol. Japan has updated its sustainability policy to tighten the carbon intensity reduction requirements of ethanol that is used to make ETBE from a 50 percent reduction to a 55 percent reduction. Originally, the policy only allowed sugarcane-based ethanol for import and production of ETBE, but the sugarcane-produced ethanol was not able to meet the 55 percent greenhouse gas (GHG) reduction standard. The new regulations will allow U.S. corn-based ethanol to meet up to 44 percent of the total estimated annual demand of 217 million gallons used to make ETBE, or as much as 95.5 million gallons of ethanol annually.
“The U.S. Grains Council is pleased by this decision and that Japan recognizes these improved benefits of U.S. product. We continue to work around the world, sharing the benefits of U.S. ethanol with other countries that are serious about reducing their GHG emissions,” stated Tom Sleight, President and Chief Executive Officer of the U.S. Grains Council, which has an office in Japan working closely with the Japanese government and industry. “From this decision, it is unequivocal that continued improvements in carbon intensity reductions are critical to gain and maintain market access for U.S. ethanol.”
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Bergeson & Campbell, P.C. (B&C®) is a Washington, D.C., law firm providing biobased and renewable chemical product stakeholders unparalleled experience, judgment, and excellence in bringing innovative products to market.
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On January 2, 2018, the USDA Foreign Agricultural Service (FAS) issued a Global Agriculture Information Network (GAIN) report on Japan’s fuel ethanol policy. According to the report, Japan’s Ministry of Economy, Trade, and Industry (METI) is seeking public comments on changes to its fuel ethanol policy. The changes would establish a U.S. corn-based ethanol greenhouse gas (GHG) emissions value of 43.15; allow U.S. corn-based ethanol to be imported for the production of bio-ethyl tert-butyl ether (ETBE); increase the GHG emission values for Brazilian sugarcane ethanol and gasoline; and increase the GHG reduction target from 50 to 55 percent. Comments on the proposed changes are due by January 18, 2018. GAIN reports are prepared by U.S. Foreign Service officers working at posts overseas who collect and submit to FAS information on the agricultural situation. |
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