Ministry of Economy,
Trade and Industry
Agency of Natural
Resources and Energy

November 2014
Ritsuko SANUKI
New and Renewable Energy Division
Agency for Natural Resources and Energy
Ministry of Economy, Trade and Industry (METI), Japan

Biofuel Policy, Related Guidelines and Regulations

Ministry of Economy,
Trade and Industry
Agency of Natural
Resources and Energy Next-generation Vehicle and Fuel Initiative (adopted by METI, May 2007)
 The development of cellulosic biomass will be key for expanding the use of bioethanol as fuels and lowering dependence on fossil fuels.
 Cool Earth Innovative Energy Technology Program (adopted by METI, March 2008)
 BTL (Biomass to Liquid) is regarded as one of the important technologies thatsignificantly contribute to GHG reduction in 2050.
 The Law Concerning Sophisticated Methods of Energy Supply Structures (basic policies
and criteria of judgment developed by METI, 2010)
 An obligation to use a certain amount of biofuel is imposed on oil refiners.
 The development of next-generation biofuel technology, whose GHG emission
reduction is more than 50% compared to fossil fuel, shall be promoted andintroduced in the oil refining industry.
 Strategic Energy Plan (the newest (4th) version approved by the Cabinet, April 2014)
 Continues to import biofuels while taking into consideration internationalsituation and technology development of next-generation biofuel.
 Accelerates to diversify energy resources in the fields of transportation by strategic
measures including technology R&D.
2

Ministry of Economy,
Trade and Industry

Biofuel Target

Agency of Natural
Resources and Energy The Law Concerning Sophisticated Methods of Energy Supply Structures obligates oil refiners touse a certain amount of bioethanol to be blended with gasoline to produce automotive fuel.
 The aggregate target amount of bioethanol used by oil refiners for the seven years (from FY2011
through FY2017) of each year shall be as listed in the following chart (crude oil equivalent). The
use of bioethanol produced from cellulosic biomass feedstock can be doubled in volume when
figuring out achieved target amount.
 Efforts for promotion of technology development and use of biofuel production from grass andwood cellulose, microalgae, etc. by oil refiners is also encouraged by the Law.

Target volume started to increase from 2013 towards 2017

FY2007FY2010Voluntary

ＦＹ2011 ＦＹ2012 ＦＹ2013 ＦＹ2014 ＦＹ2015 ＦＹ2016 ＦＹ2017
Mandatory
Unit:1000kl

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017
as Crude210210260
320
380440500
as Ethanol
346346428
527626725824
as ETBE
817
817 1011 1244 1478 1711 1944

3

NEDO’s Role in Japan’s Renewable Energy Development

Ministry of Economy,
Trade and Industry
Agency of Natural
Resources and Energy

NEDO

EnergyPolicyPartnership

METIIndustry4

Ministry of Economy,
Trade and Industry

What is NEDO?

Agency of NaturalResources and Energy

As Japan’s largest public R&D management organization,
Combining the efforts of industry, government and academia, and leveraging
established international networks,
NEDO promotes research and development that: Contributes to the solution of energy and environmental problems, and Further enhances Japan’s industrial competitiveness.
History
1980: Established as the New Energy
Development Organization
1988: Reorganized as the New Energy andIndustrial Technology Development
Organization
2003: Reorganized as an Incorporated
Administrative Agency under theMinistry of Economy, Trade andIndustry (METI)

148.4
billioneuros
yen ininFY2014Budget : 1.4billion
FY2011※Rate: ¥103.93/€

Crossover, Others

Research &IndustrialDevelopmentTechnologies(¥138.1(ICT, Life science,billion)
Nanotechnology,Others)

Energy andEnvironment
Technologies(Renewableenergy, Energy
conservation,Others)

Personnel
Approximately 800

InternationalProject Activities

5

NEDO’s R&D Portfolio in Renewable Energy

Ministry of Economy,
Trade and Industry
Agency of Natural
Resources and Energy

R&D Budget for New Energy: 28.1 billion Yen

Solar PV

9.3 billion yen

Higher efficiency, lower cost PV system. Innovative PV technologies

Biomass

3.6 billion yenBioethanol from woody biomass, BTL, biodiesel from microalgae

Wind5.0 billion yen

Offshore wind power generation, 7 MW-class wind turbine

Ocean

2.5 billion yen

Ocean wave power, tidal current power

Geothermal 0.5 billion yen
Binary power system

Hydrogen and Fuel Cell 7.2 billion yen
Hydrogen production, transportation and storage, hydrogen infrastructure, SOFC

6

Programs and Schedule of Biofuels R&D in NEDO

Ministry of Economy,
Trade and Industry
Agency of Natural
Resources and Energy

Continued（FY2013-FY2016）

Development in Japan

Project to develop base technologies
for non-edible plant-derived
bioethanol （FY2007-FY2012）

B : Bioethanol & System
Project to dev. integrated prodsys for ethanol derived from
non-edible plant （FY2009FY2013）

R&D projects
about Algal
Biofuels

FY2007

To Be Continued

C : Next-Gen Biofuels
Project to develop next-generation
biofuels other than ethanol（FY2010-FY2016）

FY2010

FY2020FY2014

International Demonstration ProjectBioethanol Production from Cassava Pulp
Bioethanol Production from Bagasse
7etc.

Commercialization andDemonstration overseas

Energy Security Technology Development
A : Fundamental R&DMinistry of Economy,
Trade and IndustryBiofuels Development Challenges

Agency of Natural
Resources and Energy○ Currently fuels in transportation sector is almost totally dependent on fossil fuels. It is
important and urgent issue to further ensure energy security and diversify fuel sources byintroducing biofuels.
＜Sugar cane, Corn, etc. (1 st Generation)＞○Biofuels produced from edible farm goods by fermentation technology. The market is already established and widelydistributed centering around main producer country Brazil. On the other hand, as feedstock is edible agri product, it isnecessary to develop technology to avoid competing with food resources.
＜Woody plants, Herbaceous plants（Cellulosic Bioethanol: 2nd Generation）＞○Biofuels produced from cellulosic biomass by fermentation technology. Aiming to create a market around 2020,
currently making efforts to establish integrated system for low-cost production which does not compete with foodand avoid environmental problems.
＜Microalgae, BTL (3rd or Next Generation)＞○In addition to urgent need to tackle by accumulated technology of fermentation for a long time, in order to ensure
further energy security and expand the market at around 2030, conducting R&D on utilization of microalgae biomass
and BTL (Biomass to Liquid) technology which can make maximum use of feedstock, etc., to develop high-efficientand high-yield biofuel production technology.

Cellulosic Bioethanol

Biomass

Pretreatment

Sacccharificat. Condens.
Ferment.
Dehydrat.

Ethanol

Microalgae
Cultivation

Condens., Dehydrat.

Extract., Purificat.

Biofuels↑

Change in biofuel prices by introducing technological innovation

8

Ministry of Economy,
Trade and Industry

NEDO’s Current R&D Project on Next-Gen Biofuels

Agency of Natural
Resources and Energy“Strategic Development of Next-Generation Bioenergy Utilization Technology”
 Aim to further broaden and diversify biofuel resources which do not compete withfood supplies by conducting technology R&D on microalgal biofuel production andbiomass gasification and liquefaction.
○ identify and develop high- oil producing strain○ high-efficiency culture, condensation, extraction technology○ low-cost gas refining technology○ high-efficiency synthesis/reforming technology in low pressure condition, etc.

MicroalgaeCulture

抽出
精製・改質

Condens., Dehydrat.

Cellulosic BiomassGasification

乾燥～～～

濃縮・脱水Refine

Compress, Synthesis,
Reforming

Extraction,Purification

Refine,Separation

Biofuels

Biofuels

9Ministry of Economy,
Trade and Industry

Programs and Schedule of Next-gen Biofuels R&D
H24Fy
２０１２

Strategic Development of Next-generation Bioenergy Utilization TechnologyTechnologyDevelopment

H25Fｙ
２０１３

H26Fy
２０１４

H27Fy
２０１５

H28Fy
２０１６

H29Fy
２０１７

H30Fy
２０１８

Agency of Natural
Resources and Energy

H31Fy
２０１９

H32Fy
２０２０

H37Fy
２０２５

algal biofuels

Selection & Breeding

Open huge cultivation

Harvesting

Improvement of Oilcontent

Demonstration (Internal)> 1000 ㎡“From cultivation to fuel production”
Establishment of consistent process

Demonstration (outside)> 5000 ㎡

Technology
Development
Gasification
Hydro thermalliquefaction

FT synthesis to bio-jet,bio-diesel

scale-up forcommercial use

BTL
Current problem is“securing ofMRJ
materials” with cheaply in large
quantities

Demonstration (Internal)

scale-up forcommercial use

10

Ministry of Economy,
Trade and Industry

Major R&D Projects regarding Algal Biofuels
Algae Species
1 Euglena

Lipids（#Carbon）

Cultivation

waxmonoester（C14）

Hitachi

StrainSelection

OilRefiner

Euglena

JX

Chuo Univ

Idemitsu

Kobe Univ－J-Powerroundpool(10)

Tokyo U ofA&T－

NeoMorgan－Miyazaki
Univ

Cosmo

2

Pseudococcomyxa sp.
KJDenso3

Chlamydomonas
orbicularis Tai-04

DIC

Glyceride（C16～18）

Fistulifera solaris
4
JPCC DA0580

Agency of Natural
Resources and Energy

Scale
(m2)
raceway(25)
raceway(60)
raceway(50)

Botryococcus
5(improved strain)hydrocarbon（C30～32）

IHI

squarepond(100)

6 Thraustochytrids

Glyceride（C16～18）

Biomaterialin Tokyo(30 L jarFermentor)

11

Ministry of Economy,
Trade and Industry

R&D project 1: Euglena

Agency of Natural
Resources and Energy

R&D Theme
In this project, technology development for improving
the productivity and oil content of Euglena,establishment of ideal culture conditions and basic
experiments on mass culture and oil production or
analysis of the metabolic pathway for paramylon
accumulation, which is a precursor of oil production inEuglena, along with the suitability of its oil as jet fuelwill be investigated.

Improvement in productivity of Euglena
and its oil content
Sunlight
CO2
WaterCulture

CondensationOilextraction

Water (Recycled)

Species

EuglenaScale

raceway (25m2)

Lipidswax-monoester

CompanyJX, Euglena, Hitachi, Keio Univ.

Euglena oil
Fuel（HydrogenationIsomerization）
Extraction residue(Reuse under investigation)

DryingExtraction

Jet fuel12

Ministry of Economy,
Trade and Industry

R&D project 2 : Pseudococcomyxa

Agency of Natural
Resources and Energy

R&D Theme
The objectives of this R&D are development ofautomatic cultivation system which can maintain the oilrich microalgae as the dominant species more than twomonths, development of membrane filtration system for
100-fold cell concentration and development of catalytic
conversion technology from bio-crude oil tohydrotreated biofuel.

Species

Pseudococcomyxa sp. KJ

Scale

raceway (30m2)

LipidsTGACompany

Denso, Chuo Univ, Kubota,
Idemitsu

Oil Rich Microalgae
Fertilizer
肥料

Recycle of Water
Raceway Pond

Polymeric hollow-fiber
membrane
Pre-Treatment

Hydro-treatment

Ceramic membrane

BioCrude
Bio Fuel

Automatic Cultivation

Harvesting

Extraction
13

Ministry of Economy,
Trade and Industry

R&D project 3: Chlamydomonas orbicularis

Agency of Natural
Resources and Energy

R&D Theme
Novel cultivation system is developed to maximize oilproductivity by realizing both high cell density culture andhigh oil content in the cell. Mass cultivation is also
performed with 50 m2 pond to develop the optimized
system. Economics, material and energy balance are
estimated based on the cultivation data. Construction ofhigh-oil producing green alga through metabolicengineering is intended by the development of genomictransformation of C. orbicularis.

Species

Chlamydomonas orbicularis Tai04

Scale

raceway (50m2)

LipidsTGACompany

DIC, Kobe Univ,
Nat’l Inst of Basic Biology

Oil

Under seawater environment, to form the oildroplets after the nitrogen source consumption
14

Ministry of Economy,
Trade and Industry

R&D project 4 : Fistulifera solaris

Agency of Natural
Resources and Energy

R&D Theme
This project aims to create new basic system for green
oil production throughout the year using mesophilic andcryophilic oil producing diatoms. Based on theconsiderations of four factors described above, the entire
process for green oil production will be designed toimprove the EPR (Energy Payback Ratio) and the costperformance. Furthermore, the metabolic engineering bygenetic engineering will be performed to enhance the oilproductivity in candidate strains.

Species

Fistulifera solaris JPCC
DA0580Scaleround-pool (50m2)

LipidsTGACompany

J-Power, JGC, Tokyo U of A&T

TGA

Oil content (max): 60 wt% （C16:0, C16:1）
growth rate: > 1/day15

Ministry of Economy,
Trade and Industry

R&D project 5: High-yield Botryococcus

Agency of Natural
Resources and Energy

R&D Theme
To produce algae oil at low cost and with minimal energy,
it is necessary to increase cell size, optimize density
and reduce byproducts. Also, development ofrecombinant DNA technology for algae is very importantfor a breeding method. In this R&D, these traits are being
added for high-speed cultivation of Botryococcus to
improve economic efficiency and the energy balance byconstructing a large-scale cultivation system.

Species

Botryococcus(improved strain)

Scale

Square open pond (100m2)

Lipidshydrocarbon

CompanyIHI, Neo Morgan Lab,
Kobe Univ.

Resent Topics: leading to “Energy-saving harvest”

particle size was increased（left: original strain , others: improved strains）

Flotation ratio was improved（left: original strain , others: improved strains）

16Ministry of Economy,Trade and Industry

R&D project 6: Thraustochytrids

Agency of NaturalResources and Energy

R&D Theme
This project aims at developing a production systemwith thraustochytrids that are genetically modified toutilize lignocellulose-derived (corn fiber, rice straw, etc.)
sugar solutions efficiently. Other areas such as
production cost, methods of oil extraction, fuel quality,and energy conversion will also be examined.

Species

Thraustochytrids

Scale

reacter (30L)

LipidsTGACompany

Biomaterial in Tokyo Co., Ltd.
Miyazaki Univ

PentoseHexose Hexose transporter

Pentose transporter
5/7 L jarfermentor

Saccharified
lignocellulose

Hexose metabolic system

Pentose metabolic system

Glycolytic pathway

Pentose phosphatepathway

30 L jarfermentor

1,000 Lfermentor

Develop high-density cultivation system
2. Assessment of cultivation methods

Acetyl CoA

Oil
production
systemCOOH

OilThraustochytrids

Cell membrane
・ Genetic modification to allow pentose metabolism (addition of portion in red)

1.Generation of saccharified biomass-compatible thraustochytrids strain

COOH

・ Analysis of oils madeby thraustochytrids
・ Evaluation ofindustrial- scale
production methods

3. Evaluation of fuel suitability

17

R&D project 7: Biomass to Liquid by MHI & Toyama Univ

Ministry of Economy,
Trade and Industry
Agency of NaturalResources and Energy

R&D Theme
The commercialization of biomass to liquid (BTL) technology
requires not only development of stand alone processes but atotal system solution. This R&D targets the development of an
innovative biojet fuel production system. This R&D focuses on
the development of entrained flow gasifiers suitable for BTL
and FT synthesis catalysts for biojet fuel with high selectivityand durability. This development is aimed at improving
efficiency and reducing the cost of BTL systems, which arechallenges in biomass energy consumption.
Biomass gasification process

Biofuel synthesis process
Off-gas

Cooling andrefinement

Biomass

FT synthesis
fuelJet fuelPretreatment
FT synthesis

Biomass
gasification

WaxingSeparation
Hydrogenation

Distillation

Kerosene
Light oil18

Technology Steadily Developing …

Ministry of Economy,
Trade and Industry
Agency of Natural
Resources and Energy... Advancing step by step, METI/NEDO have been tackling
various challenges with the spirit of“Slow but Steady Win the Race”.
 Above all, crucial to establish a solid, large-scale cultivation
system to prove its feasibility – before moving into whole
integrated production system; Simultaneously further promote developmentof cost/energy-efficient process technology;
 Once proved, speeding up decision making andstepping forward to next stage isabsolutely necessary!!!

19

Ministry of Economy,Trade and Industry
Agency of Natural
Resources and Energy

November 2014
Ritsuko SANUKI
New and Renewable Energy Division
Agency for Natural Resources and Energy
Ministry of Economy, Trade and Industry (METI), Japan