Japanese greenhouse reduction goals can be helped by U.S. corn ethanol

The National Corn Growers’ U.S. Grains Council (USGC) recently released a study that concluded U.S. corn ethanol can help Japan meet its target to reduce greenhouse gas by 50 percent.

This study helps the USGC prove the case for U.S. ethanol’s competitiveness and sustainability, including showing the Japanese government that U.S. corn ethanol meets the rigorous international sustainability requirements in Japan.

Dr. Steffen Mueller, principal economist at the University of Illinois at Chicago Energy Resources Center, and Stefan Unnasch, managing director of Life Cycle Associates, authored the study. They attribute the results to increased number of co-products and improvements in U.S. corn cultivation practices.

"As one of the world's largest fuel markets and a major user of ETBE, it would greatly benefit Japan to have a wider range of choices in what ethanol is used in their ETBE production," Michael Dwyer, chief economist for the U.S. Grains Council, who focuses on ethanol export strategy, said. "With U.S. ethanol significantly less expensive than Brazilian ethanol, having U.S. ethanol qualified for inclusion in Japan's policy should reduce the cost of purchasing ETBE from the U.S. or producing ETBE in Japan from imported U.S. ethanol."

Japan will decide if it will include U.S. corn ethanol in its biofuel policy in the spring of next year. Other target markets for U.S. corn ethanol include Mexico, China, India, the Philippines and Peru.