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2 Japan's biofuel drive faces a bumpy
road By Hisane Masaki
TOKYO - In a significant step in the
government-led campaign for promoting biofuel,
major Japanese oil distributors have begun to sell
bio-gasoline at a limited number of filling
stations in the Tokyo metropolitan area on a trial
basis.
Still, the nation's biofuel drive,
ignited by growing environmental and energy
concerns, faces a bumpy road ahead. It remains to
be seen whether the world's second-largest economy
will be able to
reach the government-set goal
of saving 500,000 kiloliters of crude oil per
annum through the use of biofuel by 2010.
Two weeks have passed since bio-gasoline
hit some pumps with much fanfare. But sales to
Japanese motorists are still stuck at noticeably
low levels, although it is too early to draw a
conclusion about the future level of bio-gasoline
consumption.
Nippon Oil Corp and nine
other Japanese wholesalers began to sell
ETBE-blended gasoline at 50 filling stations in
Tokyo, Kanagawa, Saitama and Chiba prefectures on
April 27. The other wholesalers are Idemitsu Kosan
Co, Taiyo Oil Co, Fuji Oil Co, Cosmo Oil Co,
Kyushu Oil Co, Showa Shell Sekiyu KK, Japan Energy
Corp, TonenGeneral Sekiyu KK and Kyokuto Petroleum
Industries Ltd as well as Nippon Oil.
ETBE
(ethyl tertiary butyl ether) is a gasoline
additive made by combining bioethanol - grain
alcohol derived from such plants as sugarcane and
corn (maize) - with isobutylene, a petroleum
product. ETBE-blended gasoline can be used in
automobiles in the same way as regular gasoline.
The bio-gasoline now on sale in the Tokyo
metropolitan area is 7% ETBE-blended and 3%
bioethanol-blended. It is the first time that
bio-gasoline has been sold in Japan on a
commercial basis. Prices for the bio-gasoline are
about the same as for regular gasoline.
The 10 Japanese wholesalers jointly
imported 7,500kl of ETBE from France for the first
time ahead of the start of the test sales.
Bio-gasoline is already popular in Europe. The
volume of ETBE imports may double in fiscal 2008 -
which starts next April - when 100 filling
stations will be selling bio-gasoline.
The
oil distributors plan to spread the sale of
bio-gasoline, selling the fuel at 1,000 outlets
across the country in fiscal 2009 ahead of the
planned full-scale nationwide introduction in
fiscal 2010.
Biofuel products are made
from corn, palm oil, sugarcane and other
agricultural products, and they have been seen by
many as a cleaner and cheaper way to meet the
world's soaring energy needs than
greenhouse-gas-emitting fossil-fuel products.
The European Union and the United States
are also promoting biofuels. The 27-nation EU has
recently set a target of increasing the share of
biofuel products, such as bioethanol and
bio-diesel, to 10% by 2020, while the US Congress
is working on a proposal that would boost biofuel
production sevenfold by 2022.
A United
Nations report released on Tuesday agreed that
biofuel products can bring real benefits, but at
the same time it warned that the benefits may be
offset by serious environmental problems and
increased food prices for the hungry.
The
report, prepared by UN-Energy, a consortium of 20
UN agencies and programs, and titled "Sustainable
Energy: A Framework for Decision Makers", said
there can be serious consequences if forests are
razed for plantations and if food prices rise as a
result of the diversion of food crops, as shown by
the recent steep rise in corn and sugar prices.
The report also concludes that biofuel is more
effective when used for heating and power rather
than in transportation.
Environment,
energy concerns In Japan, the Environment
Ministry and the Agriculture, Forestry and
Fisheries Ministry are pressing forward with the
introduction of bioethanol, saying that it helps
prevent global warming.
Under the 1997
Kyoto Protocol, Japan is required to slash its
emissions of carbon dioxide and several other
greenhouse gases by 6% between 2008 and 2012 - the
protocol's first commitment period - from the 1990
levels. But the nation's emissions have actually
risen by about 8% from the 1990 levels. Japanese
officials acknowledge that it is now almost
impossible to achieve the 6% reduction target.
Under the protocol, which took effect in
February 2005, carbon dioxide generated from the
combustion of bioethanol is not subject to
reduction obligations, since it is produced from
crops that absorb carbon dioxide from the
atmosphere. As part of measures to achieve the
target, the Japanese government decided in April
2005 to introduce biofuels worth 500,000kl of
crude oil by fiscal 2010.
Fumiaki Watari,
president of the Petroleum Association of Japan
(PAJ), said the start of bio-gasoline sales "is a
revolutionary project because people can foster
awareness of environmental measures by using it".
The government-orchestrated drive to
promote bio-gasoline is also part of efforts to
ensure the resource-poor nation's energy security
in the medium and long terms, amid stubbornly high
prices and increasingly tough global competition
for oil.
The New National Energy Strategy,
which was compiled last year by the Ministry of
Economy, Trade and Industry (METI), set a goal of
reducing the nation's reliance on oil for
transport to 80% from the current 100% by 2030.
Japan imports almost all of its oil, nearly 90% of
which comes from the volatile Middle East.
Starting in 2010, the Environment Ministry
will require all new cars to be able to run on a
blend of 10% bioethanol and 90% regular gasoline.
Japan currently allows ethanol mixtures of up to
3% at the nation's pumps, but in practice only a
handful of cars had actually been running on
bioethanol blends in the country until
bio-gasoline sales began on April 27.
Meanwhile, the Agriculture, Forestry and
Fisheries Ministry is embarking on projects,
either on its own or in cooperation with the other
government ministries, to encourage the use of
domestically
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