Fraying at the Seams of the System: The Struggle to Spread Waste Wood Bioethanol in 2007

Fraying at the Seams of the System: The Struggle to Spread Waste Wood Bioethanol in 2007
In 2007, Japan was rushing to implement effective measures to reduce greenhouse gas emissions as the first commitment period (2008-2012) of the Kyoto Protocol approached. Bioethanol was the first alternative energy source to petroleum that was attracting attention. Ethanol derived from corn in the U.S. and sugarcane in Brazil were at the core of national strategies, and Japan was also exploring "biofuels made from domestic resources.
Against this backdrop, the Ministry of the Environment is giving a strong push to the "Bioethanol Japan Kansai (BJK)" in Sakai City, Osaka Prefecture, for a bioethanol business using waste wood as raw material. Technological operations have begun, and experiments to supply gasoline (E3) mixed with 3% of the ethanol produced have started in the Kansai region.
The reality, however, was far from ideal.
To coincide with the start of E3 supply, a "cooperative vehicle" system was established, under which corporate-registered vehicles could cooperate, but only 107 vehicles were registered. The distribution infrastructure was not in place, with only two service stations in Osaka Prefecture. In addition, the cumbersome system, which required the submission of a prescribed report and advance registration before fueling, discouraged participants from participating. The hurdles remained high for corporate use, let alone for general consumer diffusion.
Behind this was the division of energy policy due to "territoriality" among ministries and agencies. Even though the Ministry of the Environment was enthusiastic about supplying ethanol derived from waste wood, the Ministry of Economy, Trade, and Industry and the Ministry of Land, Infrastructure, Transport, and Tourism were in charge of designing the distribution infrastructure, taxation system, vehicle support, and other systems. The key policies were not coordinated, and it was difficult to see "who is promoting what" in the field.
Furthermore, in 2007, crude oil prices soared, while grain prices soared due to demand for biofuels. International criticism was mounting that the U.S. bioethanol policy was causing competition between food and fuel. In such a situation, Japan placed its hopes on "inedible raw materials" that do not compete with food, such as waste wood and rice straw, but the technical and institutional groundwork on the ground was still underdeveloped.
The "translation of energy policy among ministries," as the article put it, was typical of stove-piped government, and it was a moment when the rift between "gutsy" enthusiasm and the actual system was exposed. This project is symbolic of one of the steps that Japan was taking in its quest for energy independence from domestic resources.
This case, which is a single episode of inconsistency between ideals and reality, technology and institutions, and vision among ministries and agencies, is a typical example of how a "policy draft" can dampen enthusiasm on the front lines.