U.S. Grains Council staff and representatives&rsquo; recent activity in Japan has contributed to a major breakthrough for U.S. ethanol, allowing domestic producers to access up to 100 percent of the Japanese biofuel market. In the leadup to the landmark announcement, council staff and members of the Illinois Corn Marketing Board were accompanied by Illinois Sen. Tammy Duckworth to Tokyo to meet with Japanese auto manufacturers, the Department of Agriculture&rsquo;s Foreign Agriculture Service (FAS) Tokyo, U.S. Ambassador to Japan Rahm Emanuel and Ministry of Economy, Trade and Industry (METI) officials to discuss Japan&rsquo;s commitment to double ethanol consumption by 2030. Japanese ethanol imports are in the form of ethyl tert-butyl ether (ETBE). The U.S. first achieved market access following a change in Japan&rsquo;s policy in 2018, coinciding with its industry&rsquo;s interest in U.S. ethanol&rsquo;s low carbon properties. The USGC estimates U.S. ethanol in Japan totaled about 140 million gallons (utilized in the form of ETBE) during marketing year (MY) 2021/2022. The current volume for Japanese bioethanol consumption remains at 217 million gallons (77 million&nbsp; bushels in corn equivalent) per year at an ethanol blend level of 1.9 percent ETBE. Japan&rsquo;s METI oversees Japan&rsquo;s energy policy, which includes how ethanol is to be utilized in the country. The U.S. industry delegation discussed ways to further increase Japan&rsquo;s ethanol consumption to comply with global environmental targets and domestic consumer initiatives by demonstrating infrastructure feasibility, supply availability and automobile compatibility to promote a direct blend of E3 in the near term. In addition to creating market access for U.S. ethanol, the mission was also a time to discuss sustainable aviation fuel (SAF), the carbon reduction benefits of ethanol and the reliability of the U.S. ethanol supply. Representatives from Japan&rsquo;s All Nippon Airways and Boeing were present at a biofuels panel hosted by the U.S. embassy to hear from ICMB and other industry representatives about ways to use corn ethanol-based SAF within their policies. Just a month after the council&rsquo;s meetings in Tokyo, METI released its final proposed rule for partial amendment of the Act on Sophisticated Methods of Energy Supply Structures&mdash;in place through 2028&mdash;that allows the country to further contribute to its climate targets through consumption of lower-carbon ethanol and, for the first time, will grant U.S. ethanol the ability to achieve full access to the Japanese biofuel market. The act, which is reviewed every five years, featured timely and scientific updates regarding the lifecycle assessment of U.S. corn-based ethanol. The council is delighted to have contributed to this new ruling through years of programs, meetings and other initiatives in Japan to provide U.S. ethanol producers with a new, high-volume market that will increase their profit and lower carbon emissions overseas.
Author: Mackenzie Boubin Director of Global Ethanol Export Development U.S. Grains Council <a href="mailto:mboubin@grains.org" target="_blank">mboubin@grains.org</a>
Printed in the June 2023 issue of Ethanol Producer magazine

Mackenzie Boubin, Director of Global Ethanol Export Development, U.S. Grains Council 

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In Japan to discuss the country's commitment to double ethanol consumption by 2030, U.S. Grains Council staff and Illinois Corn Marketing Board members were joined by Illinois Sen. Tammy Duckworth (head of the table). The group met with auto manufact

U.S. Grains Council Celebrates Japanese Ethanol Ruling

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U.S. Grains Council Celebrates Japanese Ethanol Ruling