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Japan’s new biofuels policy allows for increased imports of US ethanol

Japan has published a new biofuels policy that will allow the United States to capture up to 100% of Japan’s on-road ethanol market, according to the Office of the United States Trade Representative.

According to the new biofuels policy under the Sophisticated Methods of Energy Supply Structure Act, exports of US ethanol could increase by more than 80 million gallons annually, representing an additional $150-200 million in exports each year.

Japanese regulators revised the US corn ethanol carbon intensity score that allows US ethanol to fully access the entire bioethanol market—up from 66% access in 2021 based on continued improvement in reduction of carbon emission by the US ethanol industry.

The target volume for Japanese bioethanol consumption remains at 217 million gallons per year at an ethanol blend level of 1.9% utilized in the form of ethyl tert-butyl ether (ETBE).


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