The U.S. Grains Council (USGC) announced on Tuesday that Japan had changed its biofuels policies. This change has opened the door for United States exports of ethanol to begin entering the country.
USGC said in a statement, “As farmers, we welcome this news as we know that U.S. ethanol can meet Japan’s need for a high octane, low-carbon fuel source in reducing greenhouse gas (GHG) emissions and improving air quality.”
Japan’s decision is based off studies of U.S. corn-based ethanol. The studies showed commitments to larger reductions in GHG emissions and uses for by-products such as distiller’s dried grains with solubles (DDGS). These byproducts are being used as animal feed ingredients.
The U.S. will provide Japan with up to 44% of their biofuels demands. Japan’s annual demand is estimated to be about 217 million gallons. This means the U.S. will be providing about 95.5 million gallons.