Groups Welcome Japan Decision on ETBE

A new biofuel policy adopted by Japan will allow for imports of Ethyl Tertiary Butyl Ether (ETBE) from U.S. corn-based ethanol, a development welcomed by U.S. renewable fuel and grain groups. The Japanese policy calls for an increase in the carbon intensity reduction requirements of ethanol used as a feedstock to make ETBE to meet a 55% reduction, up from 50%, and recognizes corn-based, US-produced ethanol’s ability to meet that goal, even with the higher greenhouse gas (GHG) reduction standard.Japan will now allow U.S. ethanol to meet up to 44% of a total estimated demand of 217 million gallons of ethanol used to make ETBE, or potentially 95.5 million gallons. Japan imports nearly all of the ETBE from ethanol that it uses, according to an announcement from Growth Energy, the Renewable Fuels Association and U.S. Grains Council. “For the first time, the U.S. ethanol industry will have the opportunity to compete for a portion of Japan’s fuel blending market,” said Growth Energy Chief Executive Officer Emily Skor.