Okinawa vows promotion of sugarcane derived biofuel

Japan's Economy, Trade and Industry Minister Toshihiro Nikai pledged Tuesday the state will spearhead efforts to develop bio-ethanol in Okinawa by using sugarcane grown in the prefecture, as part of the central government's industrial promotion policy for the area.

Nikai vowed cooperation in the bio-ethanol development during his meeting with Okinawa Gov. Keiichi Inamine and said at a following symposium on the new energy in Naha that Tokyo will first consider utilizing Okinawan sugarcane to produce the plant-derived fuel before examining the possibility of importing it from the world's largest producer Brazil in the future.

This comes after Japan and Brazil already signed a biofuel pact. Under this pact, Brazil is to export 500 million liters of ethanol per year until 2020. (earlier post).

"We want to place bio-ethanol at the center of our new energy strategy but at present, we face challenges such as high production costs compared with
gasoline, insufficient infrastructure for distribution and difficulties to
secure stable supply," Nikai said.

"The central government should give special consideration in promoting the
fuel and maybe the state could cover costs to prepare tanks to accommodate it" at gas stations, he said.

Ethanol is considered a promising alternative to fossil fuel amid the recent surge in crude oil prices, Kyodo News reported.


Brazil is the world's largest bio-ethanol producer, with an annual output of about 15 million kiloliters, and it is also the only exporter of the fuel.

Japan and Brazil have set up a study group on importing the fuel from Brazil to Japan.

Japan currently uses the plant-derived fuel only in experiments for
demonstration, but aims to eventually increase its use as a way of achieving its target under the Kyoto Protocol to cut carbon dioxide and other greenhouse gas emissions.

Plant-derived fuel made from sugarcane and corn helps reduce CO2 emissions
because when burned, it releases only CO2 that was already absorbed by the
plants.

The Petroleum Association of Japan, an industry group of oil wholesalers, has set a goal of using about 360,000 kl of plant-derived ethanol in fiscal 2010 to contribute to Japan's achievement of goals under the Kyoto pact.

Okinawa hosts the central government's experimental projects of the bio-fuel at remote islands. Nikai will visit Miyakojima Island on Wednesday to inspect one of the demonstrations under which the fuel is used to run about 100 local government vehicles on the island.

Inamine said at a joint news conference with Nikai that he hopes those new
energy projects will help boost the local economy.

"As an island prefecture, Okinawa shoulders higher costs of energy than other areas. The bio-fuel represents possibilities for new industry and environmental conservation in the prefecture," he said at the symposium.

Nikai said Prime Minister Junichiro Koizumi is aware of the importance of
developing ethanol in Okinawa. The industry minister denied that the central government is promoting the new energy to compensate Okinawa for its burdens in continuing to host the bulk of the U.S. military presence in Japan despite the planned realignment of the U.S. forces.

The minister also said that the government is considering setting up 10
facilities called ''new energy parks'' across Japan to inform visitors of the new energy sources and that Okinawa could be a candidate site.

Officials of the Ministry of Economy, Trade and Industry later said that the state is planning to expand the Miyakojima project to apply the bio-fuel to some 20,000 vehicles running on the island, which has a population of about 50,000. (*)

Antara News.