US ethanol sector secures rare trade win in Japan ETBE import decision

The US ethanol industry has welcomed Japan’s decision to allow US corn-based ETBE imports following a review of the country’s sustainability policies, which have tended to favour sugarcane-based ethanol production.

“From this decision, it is unequivocal that continued improvements in carbon intensity reductions are critical to gain and maintain market access for US ethanol,” said Tom Sleight, president and chief executive officer of the US Grains Council.

The move comes after Japan updated its sustainability requirements, which were last addressed in 2010.

As biofuel policy shifts globally towards greater consideration of the greenhouse gas savings – which are also known as the carbon intensity savings – that biofuels offer, the revisions boost emission reductions from 50% to 55%.

Alongside that, Japan also recognises that US corn-ethanol production, the feedstock in ETBE production, is able to meet that goal and allows US ethanol to contribute up to 44% of the 217 million gallons of ethanol Japan needs.

“We are pleased Japan now allows ETBE imports from US corn-based ethanol, as this opens an important and growing market for American farmers,” said the Renewable Fuel Association’s Bob Dinneen.

The US is currently on track to consume 5.575 billion bushels (141 million mt) of corn as part of its ethanol production, but domestic political issues have raised fears over the future of the sector. 

Securing export markets are seen as key in assuring the industry's growth and expansion.