June 4, 2006

JAPAN: From E3 to E10 by 2020

AutoOrbis just published this brief report on a review of Japan's energy policy. See also the USDA Foreign Agricultural Service Japan Bio-Fuels Production Report. Here are some excerpts:


Japan’s Energy Policy Review; From E3 to E10 by 2020
By Mike Millikin

A review of Japan’s energy policy by the Ministry of Economy, Trade and Industry concluded that the country must improve its energy efficiency by 30% and reduce its dependency on crude oil from 50% today to less than 40% by 2030 to cope with surging oil prices. The ministry released the final version of the review last week.

Japan, with almost no oil reserves of its own, is the world’s third-largest oil consumer after the US and China, according to the US Energy Information Administration. Japan consumed an estimated 5.35 million barrels per day (bpd) of oil in 2004, down from 5.50 million bpd in 2003.

Among the recommendations in the review are boosting the efficiency of cars and appliances, increasing the proportion of crude oil production developed directly by Japanese firms from 15% today to 40% by 2030, and increasing the percentage of ethanol in gasoline from 3% (E3) to 10% (E10) by 2020. The review also suggests maintaining or boosting nuclear energy to contribute 30-40% or higher to total energy production.

One of the main drivers for a biomass policy is Japan’s commitment to reduce its greenhouse gas emissions under the Kyoto Protocol. The country’s first biomass strategy incorporated a 2003 decision to allow blends of up to 3% ethanol (E3).

Japan has been increasing its partnership with Brazil and Brazilian companies over ethanol production and imports.

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1 comment:

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