Japan's Ministry of Economy, Trade and Industry has made it a legal requirement for local refiners to consume a total of 500,000 kiloliters/year (3.14 million barrels/year or 8,616 b/d) crude equivalent of ethanol-based biofuels in the fiscal year which ends in March 2018, ministry officials said Monday.
The move is part the detailed requirements, which came into effect on July 5, of Japan's Act on the Promotion of the Use of Nonfossil Energy Sources and Effective Use of Fossil Energy Source Materials by Energy Suppliers. The measures include a requirement that local refiners raise their crude distillation units' residue cracking ratio, a measure of a refinery's capacity for processing heavier crudes.
METI decided on the detailed requirements for biofuels consumption following a series of advisory councils after the act took effect on August 28, 2009, having been passed in the parliament on July 1 last year.
METI's decision comes after it prejudged it would be "feasible" for local refiners to consume a total of 500,000 kl/year of ethanol-based biofuels by fiscal 2017-2018, based on the expected availabilities of ethanol from such countries as Brazil by then, one METI official said.
The target of consuming 500,000 kl/year crude equivalent of ethanol-derived biofuels equates to around 800,000 kl/year of ethanol or 2 million kl/year of ETBE-blended gasoline. ETBE is an octane booster made using ethanol.
METI's target fits with comments by the Petroleum Association of Japan, the umbrella association for local refiners, which has said it would take at least until 2017-2018 for consumption to reach the prescribed volume. Currently, the PAJ is committed to consumption of 840,000 kl/year of ETBE-blended gasoline in the fiscal year to March 2011. The commitment equates to consumption of 210,000 kl/year crude equivalent of bioethanol.
The PAJ's commitments are part of Japan's pledge to cut its greenhouse gas emissions by 6% from 1990 levels between 2008 and 2012 under the Kyoto Protocol.
Japanese refiners are now legally required to consume 260,000 kl/year of crude equivalent of ethanol-based biofuels in fiscal 2013-2014; 320,000 kl in 2014-2015; 380,000 kl in 2015-2016; 440,000 kl in 2016-2017; and 500,000 kl in 2017-2018.
The passage of the act is part of Japan's plans to lower its dependence on hydrocarbon fuels, which account for more than 80% of its energy consumption. The new legislation sets fines of up to Yen 1 million ($11,985 at current exchange rates) for companies failing to meet minimum requirements for non fossil fuel consumption.
The move is part the detailed requirements, which came into effect on July 5, of Japan's Act on the Promotion of the Use of Nonfossil Energy Sources and Effective Use of Fossil Energy Source Materials by Energy Suppliers. The measures include a requirement that local refiners raise their crude distillation units' residue cracking ratio, a measure of a refinery's capacity for processing heavier crudes.
METI decided on the detailed requirements for biofuels consumption following a series of advisory councils after the act took effect on August 28, 2009, having been passed in the parliament on July 1 last year.
METI's decision comes after it prejudged it would be "feasible" for local refiners to consume a total of 500,000 kl/year of ethanol-based biofuels by fiscal 2017-2018, based on the expected availabilities of ethanol from such countries as Brazil by then, one METI official said.
The target of consuming 500,000 kl/year crude equivalent of ethanol-derived biofuels equates to around 800,000 kl/year of ethanol or 2 million kl/year of ETBE-blended gasoline. ETBE is an octane booster made using ethanol.
METI's target fits with comments by the Petroleum Association of Japan, the umbrella association for local refiners, which has said it would take at least until 2017-2018 for consumption to reach the prescribed volume. Currently, the PAJ is committed to consumption of 840,000 kl/year of ETBE-blended gasoline in the fiscal year to March 2011. The commitment equates to consumption of 210,000 kl/year crude equivalent of bioethanol.
The PAJ's commitments are part of Japan's pledge to cut its greenhouse gas emissions by 6% from 1990 levels between 2008 and 2012 under the Kyoto Protocol.
Japanese refiners are now legally required to consume 260,000 kl/year of crude equivalent of ethanol-based biofuels in fiscal 2013-2014; 320,000 kl in 2014-2015; 380,000 kl in 2015-2016; 440,000 kl in 2016-2017; and 500,000 kl in 2017-2018.
The passage of the act is part of Japan's plans to lower its dependence on hydrocarbon fuels, which account for more than 80% of its energy consumption. The new legislation sets fines of up to Yen 1 million ($11,985 at current exchange rates) for companies failing to meet minimum requirements for non fossil fuel consumption.
