Starting in 2019, the Council worked closely with the Japanese Ministry of Economy, Trade, and Industry (METI) to update the greenhouse gas (GHG) calculation for U.S. ethanol in the form of Ethyl Tertiary-Butyl Ester (ETBE), a fuel additive that increases the octane rating when added to gasoline. As a result, U.S. ethanol was given full access to the Japanese ETBE market.
Building on that success, the Council has been working to expand the use of U.S. ethanol through moving to direct blending of E10 nationwide in Japan. Currently, Japan maintains its target volume of fuel ethanol consumption at 217 million gallons of ethanol per year in the form of ETBE, under the Act on Sophisticated Methods of Energy Supply Structures by the Ministry of Economy, Trade and Industry (METI).
The Council collaborated with USDA’s Foreign Agricultural Service (FAS) and other U.S. Government agencies, including the U.S. Embassy in Japan and the Office of the U.S. Trade Representative, to deliver messages on the benefits of ethanol blending in gasoline for GHG emission reduction in the transportation sector, through daily contacts and conferences, including at the 2024 Asia Bioethanol Summit in October 2024.
The Council hosted Japanese media reporters in the United States to obtain fundamental information on the ethanol industry and corn production in April 2024. They learned about sustainable farming practices and carbon emission reduction technologies utilized by the ethanol industry. The reporters wrote persuasive stories on ethanol to encourage the Japanese government to introduce E10.
As a result of promotional activities, including the above, Japanese METI revised its policy on bioethanol blending into gasoline to introduce E10 in a limited area first in 2028, and fully penetrate the nationwide market in 2030. This will create a 1 billion-gallon demand for ethanol ($2 billion) and a corresponding increase in sales of U.S. ethanol for the year. To support the increase, the Council invested $2 million of ATP & MAP funds in FY 2023 to 2024. This equals an ROI of $1,000 for every $1 of MAP or ATP funds invested.