E3 debuts in Nagoya

Come April, Nakagawa Bussan, a Nagoya-based fuel retailer, will begin its sales of E3, a gasoline blend which contains 3% bioethanol. This also makes the company a pioneer in selling the biofuel. Japan’s Ministry of Environment has conducted trial sales of E3 in the greater Osaka and Tokyo areas, but Nakagawa Bussan will begin commercial sales of the fuel at about 25 gas stations in the Tokai region. The company will spend ¥200 million (US$2.4 million) to set up its production facility in Nagoya, with half of its expenses shouldered by the ministry. The facility will mix bioethanol imported from the U.S. and Brazil with gasoline shipped from South Korea. It expects to sell 180,000 kiloliters of the fuel annually, leading to a 12,500 ton reduction in carbon dioxide emissions annually. E3 prices though will not be any different from regular gasoline prices. (February 10, 2010)