Japan publishes new policy paving the way for 100% US ethanol supply for blending

In Japan, following extensive engagement by the Office of the United States Trade Representative, the U.S. Department of Agriculture, and U.S. Embassy Tokyo, Japan published a new biofuels policy last week that will allow the United States to capture up to 100 percent of Japan’s on-road ethanol market.  The Biden Administration commends the government of Japan for taking another step to strengthen the bilateral trade relationship. 

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.  We will continue working with Japan to increase its on-road ethanol demand and further align its biofuels policies with that of the United States.