Nippon Oil will begin mass producing biofuel domestically next year.
The company will invest Y2 billion in its Negishi refinery in Yokohama to turn out 100,000kl of ethyl tertiary butyl ether (ETBE) a year.
ETBE is a combination of plant-derived ethanol and petroleum. It is then mixed with gasoline to create the biofuel.
Brazil is the top manufacturer of the product and Japan's leading importer.
Can you say lower transport costs and less carbon dioxide emissions?
By 2010, Japan expects sales of ETBE to be 840,000kl.
The fuel goes for about Y40/liter.
What's Y40 times 1,000 times 100,000?
Yup, I think Nippon oil will see a return on its investment.
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