Burning Rice Straw, Shaky National Policy--Biofuel Revolution to "40 yen a liter" in 2007

Burning Rice Straw, Shaky National Policy--Biofuel Revolution to "40 yen a liter" in 2007

In 2007, the Japanese government launched an ambitious national project to reduce the cost of biofuels to 40 yen per liter. Starting with the launch of the "Biofuel Technology Innovation Council" led by the Ministry of Economy, Trade and Industry (METI) and the Ministry of Agriculture, Forestry and Fisheries (MAFF), Nippon Oil Corporation and Toyota Motor Corporation, as well as university institutions, launched a demonstration study of next-generation bioethanol made from woody biomass, rice straw, construction waste, and other resources.

At the time, the cost of producing biofuels in Japan was extremely high, with sugarcane costing about 140 yen per liter as a raw material and waste wood costing only 100 yen. On the other hand, the "advanced biofuel countries" such as the U.S. and Brazil were already producing biofuel at around 40 yen per liter, making Japan's lack of competitiveness apparent. Therefore, "production at 40 yen per liter" was not just a price target, but also a symbol of energy independence and environmental strategy.

The year 2007 was also a turning point in energy policy. Crude oil prices continued to soar, with WTI crude oil topping $90 per barrel. As geopolitical risks and growing demand from China and India pushed up prices, Japan's dependence on oil was once again reminded of its vulnerability. At the same time, with the Kyoto Protocol commitment period (2008-2012) just around the corner, there were strong international calls for reductions in greenhouse gases. Against this backdrop, the development of domestically produced biofuels became a national imperative from the perspectives of both the "environment" and "resource security.

It is noteworthy that this project focused on materials different from conventional biofuels (i.e., corn and sugarcane), i.e., inedible and unused resources. For example, rice straw, of which 7 million tons are discarded annually, 1.4 million tons of construction waste, pruning branches, thinned wood, and even weeds were listed as candidates for fuel feedstock. Cellulose from these plants is broken down into sugar, which is further fermented and refined into ethanol. In addition, it was the pioneer of "second-generation biofuel," which uses innovative technology that is more efficient and has less of an environmental impact, rather than existing technology.

Of course, there were many challenges. The cost of collecting raw materials, the sophistication of fermentation technology, the development of refining facilities, and, above all, the need for social understanding and the development of a distribution infrastructure were all necessary. However, this effort was a departure from the "biofuel boom" of the early years, when food and energy were competing with each other, and a search for a "recycling-oriented resource utilization" that was unique to Japan.

The government's vision was to simultaneously revitalize local economies and prevent global warming by converting abandoned rural land and agricultural waste into energy resources. The vision included not only technological development, but also "landscape redesign. In fact, in Okinawa, Oita, and other areas, trials were underway to mix bioethanol and gasoline and sell it.

The 2007 project was not simply a challenge to reduce costs. The price of 40 yen per liter was symbolic of this. The 40 yen per liter figure was symbolic of this: a break from dependence on oil, a reevaluation of local resources, and coexistence with the earth. All of these things were entrusted to this liquid.