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Japan to Regulate Biogasoline

TOKYO - May 29/07 - SNS -- The Japanese government intends to bring in legislation to prevent low-quality biogasoline products from being sold as the sector develops.

Biogasoline accounts for just 0.3% of the market in Japan today. But the industry is expected to grow to 20% by 2010.

The government says biogasoline goes bad faster than regular gasoline and as ethanol content rises it can contribute to engine problems. Based on tests by the country's automakers, only 3% ethanol is allowed in gasoline in the country, while some sellers Iwate Prefecture have included up to 9% ethanol.

Current laws covering the quality of petroleum-based fuels like gasoline and kerosene only apply to refining operations. Proposed changes would extend the legislation to cover all firms involved in biogasoline production, including trading houses that mix gasoline and biofuels.


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