logo
menu
← Return to the newsfeed...

US assessing ethanol export opportunities in Japan

Representatives of the Renewable Fuels Association (RFA), Growth Energy and the US Grains Council (USGC) recently travelled to Tokyo to follow up on an industry market assessment of the potential to export US ethanol to Japan.

Over the next two years, the government of Japan will be undertaking a full review of its national energy policies, including biofuels, potentially opening up opportunities for additional ethanol exports there.

'The team came away with a much greater understanding of the current Japanese requirements and market conditions pertaining to ethanol and began the implementation of a strategy to help ensure that US ethanol receives fair market access under the future energy policy that will be adopted when the current policy expires in 2017,' says Jim Miller, chief economist and VP of Growth Energy.

In addition to meeting with US Grains Council staff located in Tokyo and USDA's Foreign Agricultural Service (FAS) officials, the team also met with Japanese officials from the Ministry of Economy, Trade and Industry; the Ministry of Agriculture, Forestry and Fisheries; and Japanese Diet member Arata Takebe.

'The US exported 900 million gallons of ethanol in 2014, supporting both US farmers and the ethanol industry. We know that, going forward, ethanol exports have the potential to grow and become equally beneficial for our customers overseas,' comments Tom Sleight, president and CEO of USGC. 'USGC, Growth and RFA are committed to launching initiatives in 2015 and 2016 to build demand for U.S. ethanol and address barriers to ongoing imports.

The RFA's director of regulatory affairs Kelly Davis adds: 'Japan represents a unique and exciting opportunity for US ethanol exports. However, the opening of markets and trade partnerships don't happen overnight. This trip provided our team with valuable insight and made great first steps to keep ethanol at the forefront of the discussion in Japan. The team will continue examining the requirements of the Japanese sustainability standards, looking for ways to overcome infrastructure concerns, and compiling data responding to some of the misinformation government officials still hold regarding renewable fuels.'

In 2014, the US exported a very limited amount of ethanol for industrial uses to Japan. The US ethanol industry believes there is room to open this market for fuel uses, prompting significant additional imports.

 

SOURCE: RFA





221 queries in 0.535 seconds.