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Optimism for Japan’s future ethanol purchases

Iowa’s deputy ag secretary says he’s optimistic Japan will expand its purchases of U.S. ethanol.

Grant Menke says it was a big discussion point during a recent trade mission to the country. “Right now, cars in Japan are running on the equivalent of an E1.9, but now the regulations have been cleared to allow for up to 10% ethanol by 2030.”

He tells Brownfield, “They just announced a couple weeks ago the goal of moving even further to E20 by 2040.”

Menke says Japan is currently the fifth leading export market for U.S. ethanol. “If they are able to fulfill their goals, we could see a 1.2-billion-gallon ethanol opportunity in Japan going forward.”

He says they are currently a 140-million-gallon market.

The trade mission, which included stops in Taiwan, was coordinated by the Iowa Economic Development Authority and it included representation from Iowa’s meat production, grain, and meat processing industries.

INTERVIEW: Iowa Deputy Ag Secretary Grant Menke