U.S. Could Capture Up to 100% of Japan's Ethanol Market

Japan recently 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 reported. “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.

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.

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.

EDITOR’S TAKE:

A great step forward on the part of Japan to further open markets for U.S. produced ethanol. As the article points out, ethanol could be a huge boost to U.S. exports as well as to U.S. corn farmers. Any time we can expand markets for our farmers/ranchers it will only add to their bottom line. This is the type of expansion that will benefit all parties involved. And this is precisely why we encourage you to vigorously pursue farmers and ranchers by putting them at the top of your customer prospect list. After all – isn’t that why you signed up for CAD? Our goal is to help you sell more trucks to farmers and ranchers by giving you the information and tools you need to do exactly that!