Japan: Biofuels Annual

  |   Attaché Report (GAIN)   |   JA2025-0063

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Japan: Biofuels Annual
In 2024 and 2025, Japan has met the government's mandated annual target of 824 million liters of bioethanol, with oil refineries continuing to supply bioethanol in the form of ETBE (ethyl tert-butyl ether). In 2025, Japan's average ethanol blend rate has remained at 1.9 percent. Japan is planning to introduce nationwide E10 direct blending by fiscal year (FY) 2030, while continuing with existing ETBE initiatives. Japanese oil refineries are preparing to conduct E10 regional test-runs in Okinawa Prefecture starting in FY 2028. In April 2025 and located in Sakai, Osaka, Japan’s first sustainable aviation fuel (SAF) plant began production with used cooking oil as the feedstock. However, other planned SAF projects are experiencing delays. Relatedly, Prime Minister Sanae Takaichi’s intention to abolish the 25.1 yen per liter provisional gasoline tax by the end of 2025 could slow the adoption of ethanol direct blending in the short term.
East Asia and the Pacific, Japan
Biofuels

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