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.”