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Toyota and Other Japanese Companies to Develop Cellulosic Ethanol

Toyota Motor Corporation along with other Japanese companies announced they would be setting up a research company to develop a next-generation cellulose-derived biofuel — at low-cost. Contrary to feedstock crops, cellulosic ethanol uses inedible plant matter. Recently in the U.S., feedstock based ethanol has been blamed for raising food prices however, next-generation alternatives have proven more expensive than gasoline.

According to Reuters, the consortium has set itself the goal of producing 250,000 kilolitres (1.6 million barrels) per year of bioethanol by March 2014, and producing bioethanol at 40 yen ($0.437) per litre (about $70 a barrel) by 2015.

The other firms involved include: Nippon Oil Company, Mitsubishi Heavy Industries, Toray Industries Inc, Kajima Corp and Sapporo Engineering Ltd, a wholly owned subsidiary of Sapporo Breweries.

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Cellulosic ethanol, according to a research consortium of Japanese companies including Toyota, Nippon Oil Corp., Mitsubishi Heavy Industries and Sapporo Breweries. The group plans to team up to make low-cost fuel from non-food feedstocks, according to Reuters.

They’ve set a goal of producing 1.6 million barrels of ethanol by 2014, and selling it for about $70 a barrel — or $1.67 a gallon — by 2015. That’s a higher price than many U.S.-based developers of cellulosic ethanol are promising, but then, none have hit full-scale commercial production yet (see Verenium Plans Cellulosic Ethanol Plant in Florida).