112
is an initiative of the Ministry of Agriculture, Forestry and Fisheries (MAFF) in
cooperation with other ministries. MAFF promoted increased domestic production
of bioethanol, with a strong emphasis on the technology development in the area of
soft cellulose. The Ministry of the Environment (MOE) established a Committee for
Eco-fuel Utilisation Promotion and promoted pilot projects to introduce E3. The
Basic Energy Plan, which set a target to increase the share of bioethanol in gasoline
to more than 3% by 2020, was developed by the Ministry of Economy, Trade, and
Industry (METI). As shown in Table 8.2, those ministries have supported production projects for fuel ethanol from various feedstocks, independently in some cases
and jointly in others.
In the area of introduction, that is, blending ethanol into transport fuel (especially
gasoline), promotion policies were introduced without a full agreement between the
MOE and the Petroleum Association of Japan (PAJ) on the blending method:
whether ethanol should be directly blended or should be first processed into ethyl
tertiary-butyl ether (ETBE) and then blended. This led to two different markets of
ethanol-blended gasoline, one for E3 and one for ETBE-blended gasoline (so-called
biogasoline). The lack of the agreed national blending policy was noted in the
screening process to reduce the national budget in 2010 and as a result the MOE’s
budget related to E3 promotion was recommended to be halved.
8.5.4.2 Oil Industry
PAJ was requested by the government to increase the introduction of biofuels to
210,000 kL in oil equivalent (840,000 kL in bio ETBE) as a part of the effort to
achieve the Kyoto Protocol Target Achievement Plan (a total of 500,000 kL in oil
equivalent for liquid transport fuel), and it is likely to achieve the goal. However, the
oil industry has opposed large-scale introduction of biofuels for several reasons
such as limited supply, concerns about the stability of supply, expected high infrastructure investment costs (such as oil refineries), and the potential for food–fuel
conflict. PAJ insisted on waiting for the commercialization of production technology before discussing the expansion of biofuel introduction.
11
8.5.4.3 Automobile Industry
Many Japanese auto manufacturers have already started exporting E10-compliant
vehicles, and manufacturers such as Toyota, Honda, and Nissan have already
been selling new vehicles compatible with E10 (Sakata 2009). In addition, some
companies have already launched sales of flex-fuel vehicles in Brazil, and vehicles
compatible with E85 in the United States, and E20 in Thailand. The Japan
Automobile Manufacturers Association (JAMA) published its position statement on
both ethanol-blended gasoline and FAME-blended diesel and stated that it has
11 Presentation made by the PAJ on the Medium- and Long-Term Roadmap on 3 June 2010.
M. Elder et al.
is an initiative of the Ministry of Agriculture, Forestry and Fisheries (MAFF) in
cooperation with other ministries. MAFF promoted increased domestic production
of bioethanol, with a strong emphasis on the technology development in the area of
soft cellulose. The Ministry of the Environment (MOE) established a Committee for
Eco-fuel Utilisation Promotion and promoted pilot projects to introduce E3. The
Basic Energy Plan, which set a target to increase the share of bioethanol in gasoline
to more than 3% by 2020, was developed by the Ministry of Economy, Trade, and
Industry (METI). As shown in Table 8.2, those ministries have supported production projects for fuel ethanol from various feedstocks, independently in some cases
and jointly in others.
In the area of introduction, that is, blending ethanol into transport fuel (especially
gasoline), promotion policies were introduced without a full agreement between the
MOE and the Petroleum Association of Japan (PAJ) on the blending method:
whether ethanol should be directly blended or should be first processed into ethyl
tertiary-butyl ether (ETBE) and then blended. This led to two different markets of
ethanol-blended gasoline, one for E3 and one for ETBE-blended gasoline (so-called
biogasoline). The lack of the agreed national blending policy was noted in the
screening process to reduce the national budget in 2010 and as a result the MOE’s
budget related to E3 promotion was recommended to be halved.
8.5.4.2 Oil Industry
PAJ was requested by the government to increase the introduction of biofuels to
210,000 kL in oil equivalent (840,000 kL in bio ETBE) as a part of the effort to
achieve the Kyoto Protocol Target Achievement Plan (a total of 500,000 kL in oil
equivalent for liquid transport fuel), and it is likely to achieve the goal. However, the
oil industry has opposed large-scale introduction of biofuels for several reasons
such as limited supply, concerns about the stability of supply, expected high infrastructure investment costs (such as oil refineries), and the potential for food–fuel
conflict. PAJ insisted on waiting for the commercialization of production technology before discussing the expansion of biofuel introduction.
11
8.5.4.3 Automobile Industry
Many Japanese auto manufacturers have already started exporting E10-compliant
vehicles, and manufacturers such as Toyota, Honda, and Nissan have already
been selling new vehicles compatible with E10 (Sakata 2009). In addition, some
companies have already launched sales of flex-fuel vehicles in Brazil, and vehicles
compatible with E85 in the United States, and E20 in Thailand. The Japan
Automobile Manufacturers Association (JAMA) published its position statement on
both ethanol-blended gasoline and FAME-blended diesel and stated that it has
11 Presentation made by the PAJ on the Medium- and Long-Term Roadmap on 3 June 2010.
M. Elder et al.