Japan Biofuels to buy ethanol from Oenon, Hokkaido

Japan Biofuels Supply LLP (JBS), a joint venture involving nine Japanese refiners, has signed basic agreements with two local suppliers of locally produced ethanol. As per the agreement, from April 2009 to March 2010, liquor producer Oenon Holdings Inc. and Hokkaido Bioethanol Co. will provide JBS with ethanol, which it will use to produce ethyl tertiary butyl ether (ETBE), a blending component for gasoline. JBSL’s latest move coincides with the end of a two-year pilot sales project involving the sale of 7% ETBE-blended gasoline by the Petroleum Association of Japan (PAJ), of which all the JBSL partners are members. Starting April 1, PAJ members will be required to blend a portion of their committed ETBE volume into their gasoline. (February 27, 2009)