Government targets reduction in biofuel costs by 2015

Japan will step up its efforts to produce cheaper biofuels by 2015 to ensure energy security amid rising oil prices, industry ministry officials said Wednesday.

A ministry panel recommended the same day that Japan be able to produce at least 100,000 to 200,000 kiloliters of biofuels annually from grass plants at a cost of ¥40 per liter by adopting innovative technologies.

The road map to meet this target by 2015 states that Japan needs to secure 670,000 tons of dried grass annually from a piece of land having an area of 13,270 hectares.

Japan, which imports most of its oil, wants to carry out a pilot project, either in Japan or elsewhere in Asia, if an area large enough cannot be found at home, the officials said.

Similarly, the panel at the Ministry of Economy, Trade and Industry came up with a program for Japan to make better use of untapped biomass energy sources, including logging residues and rice straw.

The program, dubbed the Biomass Nippon Case, said Japan could produce 15,000 kiloliters of biofuels annually from these resources already available in the country at a cost of ¥100 per liter.

Japan wants to have at least 500,000 kiloliters of biofuels in use by 2010.