Japan’s biofuels sector is gradually evolving, driven by the Green Transformation (GX) strategy and supportive policies aimed at decarbonization. While biofuels currently play a minor role in Japan’s energy mix, they are increasingly seen as a tool to reduce emissions, enhance energy security, and support transport electrification.
A key milestone is the planned rollout of E10 (10% ethanol blend) starting in FY2028, initially near refineries and storage hubs. By the early 2030s, Japan aims to mandate E20 compatibility in all new combustion-engine vehicles, targeting nationwide adoption by 2040.
Despite these ambitions, the market remains small due to limited blend rates, domestic feedstock shortages, and reliance on imported ethanol. Biodiesel and renewable diesel remain niche, used mainly in urban and commercial settings due to policy and supply constraints. Innovation is playing a growing role, with pilot projects converting waste oils and exploring advanced biofuels from algae, forestry residues, and textile waste. Major oil firms lead in distribution, blending biofuels into existing networks, while regional programs offer localized support.
Though biofuels will remain a niche alongside electrification and hydrogen, Japan’s policy momentum and innovation create opportunities—especially for international players. European firms can explore joint ventures, licensing, and R&D collaborations, supported by interpreters, local partners, trade fairs, academic links, and organizations like JETRO to enhance market access.
The webinar is targeted to EU companies seeking to newly develop or strengthen their current positions in Japan’s biofuels market for the automotive sector.
In 40 minutes from your desk, discover:
Programme:
Speaker: Peter Beck/ Project Manager / ECOS Consult
Since 1991, P. Beck is active as project manager of ECOS GmbH in Osnabrueck/Germany, responsible for the energy and environmental technology division. His main focus is on research, consulting and project management in the fields of renewable energy, energy efficiency, intelligent energy use and the Japanese market for sustainable energy technologies.
Moderator: Sofia Smerzi, Business Support Coordinator, EU-Japan Centre for Industrial Cooperation
Organiser: EU-Japan Centre for Industrial Cooperation - Brussels Office
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