Nebraska Pushes Ethanol Exports in Japan Trade Mission

“Japan is a top customer of Nebraska’s value-added agricultural products, and there is tremendous potential for our trade relationship to grow,” said Gov. Pillen. “With the ability to produce the lowest-carbon corn ethanol on the planet, Nebraska is well-positioned to expand its presence in the Japanese market.”

Japan’s Ethanol Expansion

In late 2024, Japan announced a policy shift to raise ethanol content in gasoline to 10% by 2030 and 20% by 2040, up from under 2% in 2024. This aligns with global trends to decarbonize transport fuels. According to the International Energy Agency (IEA), biofuels—including ethanol—will need to triple by 2030 to stay on track with net-zero scenarios.

At an ethanol buyers event in Tokyo organized by the U.S. Embassy and U.S. Grains Council, Nebraska officials highlighted the state’s advantages:

• A strong corn base for low-carbon ethanol
• Sustainable farming practices supported by the Nebraska Corn Board
• A strategic transport network through Union Pacific rail

U.S. Ambassador to Japan George Glass emphasized that the Midwest can reliably supply clean fuels to Japan’s growing energy market.

Broader Trade and Manufacturing Ties

Beyond biofuels, the delegation underscored Nebraska’s agricultural and manufacturing exports. At the Midwest-Japan Association conference, Pillen promoted investment opportunities in Nebraska’s food and industrial sectors.

The mission also included meetings with Kawasaki, which has operated in Lincoln since 1974 and now spans 1.3 million square feet of manufacturing. Kawasaki recently expanded its contract with the New York Metropolitan Transit Authority to deliver 1,610 subway railcars valued at $4.5 billion, highlighting Nebraska’s role in global supply chains.

Nebraska–Japan Economic Relationship

Japan is the world’s fourth-largest economy and a consistent market for U.S. farm exports. Nebraska shipped $699 million in goods to Japan in 2024, led by beef, pork, and grains. The state maintains a dedicated Japan office, the Nebraska Center Japan, established in 2006 to deepen trade and investment ties.

Ethanol’s Global Role

While Japan has been slower to adopt ethanol than peers, its new targets mirror broader momentum. For example:

• Brazil already blends nearly 27% ethanol in gasoline.
• The U.S. averages around 10% nationwide.
• The International Civil Aviation Organization (ICAO) is pressing members to adopt sustainable aviation fuel, a market where corn-based ethanol can play a role in feedstock development.

Nebraska, the nation’s second-largest ethanol producer, is seeking to capture this demand, positioning itself as a low-carbon supplier for Asia.