[Gasification] FACTOBOX-Osaka ethanol blended gasoline

Wed Jan 30 11:25:03 CST 2008

ews  [input]   [input]  [input]        advertisement          Wednesday May 2, 7:33 PM FACTBOX-Osaka ethanol-blended gasoline trial May 2 (Reuters) - Wanted: gasoline to blend with ethanol in Japan for a large-scale test of the renewable fuel's performance and consumer acceptance this year. Japan's Osaka municipal government plans to test its green auto fuel project in August, using gasoline directly blended with 3 percent of biomass ethanol, or E3, making it the country's first large-scale trial of E3. 
(For related analysis, click on [ID:nT157350]) 
The Osaka project faces resistance from the country's powerful oil industry, which is promoting gasoline blended with ethyl tertiary butyl ether (ETBE), already a popular renewal fuel in Europe. 
Japan, 70 percent of which is covered by forests, aims to promote the use of auto fuel from cellulose mainly from waste wood in the project, as it seeks to meet its own target set under the Kyoto Protocol to cut greenhouse gas emissions. 
Experts say waste wood, wood chips and agriculture waste, such as rice straw, are affordable in Japan although the current technology makes them barely competitive against imported ethanol. If wood-collecting method is modernised, forestry could become a sustainable provider of the feedstock.   ADVERTISEMENT
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A small-scale test is under way later this year in the island of Miyakojima, in southern Japan to supply some 20,000 vehicles on the island using E3 made from sugar cane produced there. 
Following are details on the Osaka project. 
-- E3 will be sold at 10-15 gas stations in Osaka at the same price as ordinary gasoline of around 135 yen ($1.13) a litre. 
-- Ethanol will be supplied by Bio-ethanol Japan Kansai Co. Ltd., a joint venture of contractor Taisei Corp. , trading house Marubeni Corp. , beer brewer Sapporo Holdings Ltd. and two other companies. 
-- The joint venture, supported by the environment ministry, runs Japan's first cellulosic ethanol plant in Osaka's Sakai city using mainly waste wood from construction sites. 
-- Once gasoline is supplied, Chusei Oil Co. Ltd., based in Okayama city, western Japan, will mix it with ethanol. 
-- Unlisted Chusei Oil said it would adjust its facilities to produce up to 48,000 kilolitres (kl) a year of E3 by August, given the current annual output capacity of the ethanol plant of 1,400 kl. 
-- Chusei Oil is still in talks with the Osaka government on how much it would produce E3 in the first year of the project, a company manager said. 
-- The ethanol plant started commercial production in January. It is set to run at full annual capacity of 1,400 kl by August, but a plant official declined to elaborate on how much ethanol has been produced since January. 
-- The joint venture, which uses Celunol Corp. of the United States' patent technology on cellulosic ethanol, has a plan to boost the plant's output capacity to 4,000 kl in a year or two.  ($1=119.91 Yen)  

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