Japan makes biofuel bid to reduce carbon footprint

Japan is aiming to cut carbon emissions and minimize its dependence on oil by intensifying the use of biofuels through legislation. The government launched E3 (3% ethanol/97% gasoline) in 2003, but the drive was unsuccessful. However the refiners have not blended ethanol into gasoline as yet as they would need blending facilities at gas stations. In addition, The procurement cost of ethanol can reach ¥70-80 (US$0.58-0.66) per liter for imports, making it more expensive than gasoline, which costs slightly more than ¥50 (US$0.41). The association has called on refiners to adopt ETBE as a blending component for gasoline from 2010, starting with 20% of their total gasoline sales. The Ministry of Economy, Trade and Industry, and the Ministry of Finance now want to promote the use of biofuels through a bill that will be submitted to Japans ruling body in 2008, rather than individual government agencies drawing up measures, in order for the country to help Japan meet its Kyoto Protocol commitment.  (February 12, 2007)