Japan on Friday announced a new biofuels policy. It could allow the U.S. to capture up to 100% of Japan’s on-road ethanol market, U.S. Trade Representative (USTR) Katherine Tai said Friday.
“The new biofuels policy Japan announced is the result of close collaboration between our two countries and it will further allow U.S. producers to meet Japan’s demand for more diverse energy sources,” Tai said in a news release.
According to the new biofuels policy under the Sophisticated Methods of Energy Supply Structure Act, exports of U.S. ethanol could increase by over 80 million gallons annually, representing an additional $150-200 million in exports each year, Tai said.
Japanese regulators revised the U.S. corn ethanol carbon intensity score that allows U.S. ethanol to fully access the entire bioethanol market — up from 66% access in 2021 based on continued improvement in reduction of carbon emission by the U.S. ethanol industry.
The news comes as Japan and the U.S. reached a critical minerals agreement.
“One week, two deals. Our two countries are making a better future,” said Rahm Emanuel, U.S. ambassador to Japan.
