Japan allows imports of U.S. corn ethanol

Apr 20, 2018

Previously, Japan used only sugarcane ethanol to produce ETBE

By Diego Flammini
Staff Writer
Farms.com

Japan will begin receiving shipments of a fuel additive made from U.S. corn ethanol as part of an update to its national biofuel policy.

Since 2010, Japan has only allowed imports of ethyl tertiary butyl ether (ETBE) made from sugarcane-based ethanol. ETBE is an oxygenate that, when added to fuel, can have environmental and performance benefits.

Japan’s new biofuel policy calls for a 55 percent reduction in greenhouse gas emissions, up from 50 percent in the original policy signed in 2010.

U.S. corn-based ethanol can help Japan meet its new goals, which is good news for the American ethanol and agricultural industries.

“We are pleased Japan now allows ETBE imports from U.S. corn-based ethanol, as this opens an important and growing market for American farmers,” Bob Dinneen, president of the Renewable Fuels Association (RFA), said in a statement on Tuesday. “We look forward to beginning a dialogue on how Japan’s new policy can be improved, but we certainly welcome Japan’s first step toward the use of U.S. ethanol.”

Since 2011, the U.S. has only exported 68,000 barrels of ethanol to Japan, according to the U.S. Energy Information Administration. In 2013 and 2015, no barrels of American ethanol arrived at Japanese ports.

Japan’s new policy will allow the U.S. product to account for about 44 percent of the ethanol used to make ETBE. The country will import about 96 million gallons of American ethanol annually, the RFA said.

Farmers are encouraged by the new market opportunities.

"We are very please Japan has decided to allow the imports of corn ethanol," Roger Zylstra, a director with the Iowa Corn Promotion Board, told Farms.com today. "Farmers have had some good crops lately and we have more crops to move."

"The last four to six weeks hasn't been too encouraging for agriculture in terms of trade talks, so having a good news item like this is exactly what farmers need right now."

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