Japan starts 3 year study on 10 percent ethanol blending

TOKYO (Reuters) - Japan's Ministry of Environment is starting a three-year feasibility study on E10, an alternative auto fuel, marking a slow start compared with countries such as the United States and Thailand that have already put it into practical use.

Currently, Japan allows E3, or a 3 percent mixture of biomass ethanol into gasoline, to help cut its greenhouse gas emissions and rely less on fossil fuels which are almost all imported. No vehicle suitable for E10 is available in Japan although Japanese car makers sell such vehicles overseas.

The ministry said on Monday it has given approval for two groups to study E10 issues. Osaka prefectural government will focus on ethanol made from discarded construction materials, while the Tokachi area in Hokkaido, northern Japan, will study E10 with ethanol made from farm waste.

Even if E10 were allowed, local feedstocks are at present too limited to make ethanol. Last year, Japan produced only 90 kilolitres of biomass ethanol at government-backed test plants.

($1=98.30 Yen)

(Reporting by Risa Maeda)