Cosmo, Nippon Oil eye domestic bioethanol production

Cosmo Oil Co. and Nippon Oil Corp. have each unveiled plans to produce bioethanol in Japan using local inputs. Since 2008, Cosmo Oil has been working with Nippon Paper Chemicals Co. to develop a new technology for making ethanol from wastewater in paper manufacturing. The wastewater contains many pulp fibers, which can be glycosylated and fermented to make bioethanol. To test the technology’s efficiency, the Nippon Paper Group Inc. subsidiary will build a facility at its complex in Gotsu, Shimane Prefecture, to produce 5,000-10,000 kiloliters of bioethanol per year as early as Fiscal 2012. The company aims to reduce the production cost of bioethanol to 70 yen (US$0.78) per liter to be competitive with gasoline. (January 20, 2010)