Nippon Oil To Mass-Produce ETBE in Japan

28 April 2008

Nikkei. Nippon Oil Corp. plans to begin mass-producing ethyl tertiary butyl ether (ETBE) at its Negishi refinery in Yokohama at the end of next year, becoming the first firm to do so domestically.

The company will invest about ¥2 billion (US$19 million) at the refinery to build a facility capable of turning out 100,000 kiloliters (26 million gallons US) per year of ETBE. ETBE (C₆H₁₄O) is an oxygenated gasoline biofuel component and ether, and is derived from ethanol (47% v/v) and isobutylene (53% v/v). Isobutylene sources include cracked stocks from refineries and steam crackers, or from chemical plants via dehydrogenation or dehydration processes.

ETBE was first used in 1992 in France, and now is widely used and manufactured in most major gasoline markets in the EU. ETBE’s properties of high octane, low boiling point and low vapor pressure make it a versatile gasoline blending component, allowing refiners to address both their octane and bio-component incorporation needs.

ETBE also allows petroleum companies to adjust to changing gasoline markets by using it to upgrade naphtha to gasoline or to upgrade lower octane gasoline grades to higher ones while meeting increasingly stringent environmental specifications.

Unlike ethanol, ETBE does not induce evaporation of gasoline, which is one of the causes of smog, and does not absorb moisture from the atmosphere.

All ETBE used for biofuel in Japan is currently imported from such places as Brazil. Local production will help to lower transport costs and carbon dioxide emissions. Nippon Oil aims to purchase bioethanol from domestic sources in Hokkaido for roughly ¥40 per liter [US$1.44 per gallon US]. But a portion may be imported because of insufficient domestic supplies.

Sales of gasoline blended with ETBE began in Japan in April 2007. Based on projected sales for fiscal 2010, associated ETBE demand will come to 840,000 kl (222 million gallons US).

Resources

• ETBE Technical Product Bulletin