Japan Biofuels to promote local bioethanol producers
The producers will provide the bioethanol as a feedstock for tertiary butyl ether (ETBE) which is used in blending with petrol.
The Hokkaido based producers, Oenon Holdings and Hokkaido Bioethanol, have signed a contract with the joint venture of Japanese oil refiners to run from 1 September until 31 March 2010.
Japanese oil companies started selling petrol blended with ETBE various retail markets in 2007, with a plan to market ETBE-blend petrol throughout the country from 2010.
By then the industry plans to blend an annual 840,000 kl of ETBE, containing 360,000 kl of bioethanol, with petrol so that biofuel blends will make up 20% of the country's annual total petrol demand of 1 million bpd.